Construction builds on growth in February: ONS | Mortgage Strategy

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Construction output grew by 1.6 per cent on a monthly basis in February, says the Office for National Statistics.

This was the highest monthly growth in all work since September 2020 when it grew by 1.8 per cent.

The data follows a 0.9 per cent rise in January.

However, despite growth in February of this year, it was still 4.3 per cent below the level in February 2020, before the UK began a series of national lockdowns the following month.

In February 2021, new work grew by 1.5 per cent, the ONS adds – 7.8 per cent lower than in February 2020.

The largest contributor to new work growth this February was private commercial new work, which lifted by 4 per cent.

Repair and maintenance work lifted by 1.9 per cent in the second month of this year, which lags the 2.2 per cent gain in February 2020.

McBains managing director Clive Docwra says: “Especially cheering is the growth in private commercial new work, which grew by 4 per cent, suggesting that order books are beginning to be filled on a more regular basis.

“Projects in many sectors have been paused while lockdown measures have been in place, but the lifting this week of restrictions in retail, hospitality and leisure will hopefully also kick-start investment in construction within these industries.”

But Search Acumen director Andy Sommerville adds: “The medium outlook for the property market is less favourable compared to the last six months.

“The extension of the stamp duty holiday until 30 June is unlikely to provide the same degree of stimulus that the initial holiday provided, while possible rises in unemployment once government support schemes are wound down may pare back consumer confidence.

“This is all likely to compound to put downward pressure on house prices, which would fuel greater reticence among housebuilders to maintain current supply volumes.”


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