Monthly construction output increased by 0.4% in volume in September, the latest Office of National Statistics reveal.

September shows the highest level of construction output since records began in January 2010 with figures totalling £15.12bn

This is the third consecutive month of growth following small upward revisions to 0.6% in August and 0.2% in July.

The latest monthly increase came from new work (0.6%) and repair and maintenance (0.2%).

Five out of nine sectors saw a rise in September, with the main contributors to the monthly increase seen in public housing repair and maintenance and infrastructure new work, which increased by 11.3% and 2.8%, respectively.

Data found that the level of construction in September was 4.0% above the pre-Covid level. 

New work was 0.3% (£29m) below its February 2020 level, while repair and maintenance work was 12.0% (£60m) above that level. 

On a quarterly basis, construction output saw an increase of 0.6% in Q3. However, the latest figures show this is the weakest quarterly growth since Q3 last year.

The increase came solely from the growth of 2.4% in new work as repair and maintenance saw a decrease of 2.2%.

Total construction new orders went up by 6.4% in Q3 compared to the previous quarter, which can be attributed to a rise of 27.7% in private commercial new orders.

The annual construction output price growth rate was 10.1% in the 12 months to September this year. This has slowed slightly from the record annual price growth in May earlier this year where growth was 11.5%.

ONS states that estimates for September were affected by the bank holiday for the funeral of Her Majesty Queen Elizabeth II, where some businesses may have closed or operated differently on this day.

Commenting on the latest figures, McBains managing director Clive Docwra says: “At a time when the economy is falling into recession, the construction sector continues to demonstrate resilience in the face of economic challenges with this increase in output, albeit moderate.”

“Order books currently remain strong in many work sectors, and the 5% increase in new orders in private commercial work is a sign that confidence is still in evidence.”

“However, given that the longest recession since records began is forecasted, it is inevitable the industry faces a rocky road ahead. Medium-term growth is slowing, as indicated by today’s statistics showing the weakest quarterly growth for a year.”

“Looking further ahead, as well as this meaning some projects being curtailed due to falling economic confidence, a major risk is that crucial efforts to decarbonise building stock could be sidelined. The government could help by giving the green light to a retrofitting programme, which will not only support the industry but help keep net zero targets on track.”