New figures from the Office for National Statistics show that construction output dropped by 1.7 per cent in February this year, the largest fall in monthly growth since October 2019.
The ONS says that this may be because of the weather in February, which was the wettest seen since records began in 1862.
Poor figures were seen in private housing new work, too, which fell 7.7 per cent on January’s figures, which is the second-largest fall in monthly growth in a decade – with only January 2018 being worse, at 8 per cent.
On a quarterly basis, construction output dropped by 0.2 per cent, driven, the ONS says, by a 1.7 per cent fall in repair and maintenance.
Within this, there was a 5.6 per cent fall in repair and maintenance in private housing over the quarter, with the numbers for public housing and non-housing repair growing 2.2 per cent and 0.1 per cent, respectively.
McBains managing director Clive Docwra says: “These figures are a worrying sign of sluggishness in the construction sector, which was already evident before the coronavirus outbreak.
“The bad weather in February was clearly a factor, but the more ominous sign on the horizon is the impact of Covid-19.
“On the back of these disappointing figures, the industry is bracing itself for a severe downturn over the next few months, with Covid-19 already resulting in empty sites and a significant proportion of planned investment on hold.
“This is the first time the industry has experienced three consecutive monthly falls since March 2018. It means the industry will not have a cushion to fall back on which the impact of the pandemic really bites. The sector is also more affected than many other industries as most staff are unable to work from home.”
The Federation of Master Builders chief executive Brain Berry adds: “Repair and maintenance plummeted during a wet winter, and builders have not had the opportunity to revive workloads due to the coronavirus lockdown. They have been suffering due to conditions outside of their control, and further government help is needed to get this important sector through the crisis.
“The government must ramp up its support for builders by allowing directors of small limited companies to use their dividend payments in their job retention scheme claims. A cash grant mechanism to get builders through this tough time should also be developed, and all financial schemes must come on line as soon as possible.”
Spicerhaart Part-Exchange and Assisted Move business development director Neil Knight says: “Although we came into the month on the back of steady growth, contractors have been mothballing sites and furloughing staff in waves throughout March. Next month’s figures are likely to paint an even gloomier picture as the impact bites further.
“Times are undoubtedly hard, but we all need to hold our nerve: even though the lockdown seems set to continue for a while yet, it is only temporary. We are expecting to see demand for new homes increase strongly in the months and years to follow.”
