Monthly construction output continued to decline in March, decreasing by 0.4% in volume terms on the previous month, according to the latest data from the Office of National Statistics.

This fall was due to decreases in both new work, which was down 0.7%, and repair and maintenance which recorded a smaller 0.1% fall.

Overall, the annual decrease in construction output was down 2.2%.

At a sector level five out of the nine sectors saw a fall in construction output in March — with the ONS saying the main contributors to this monthly decrease were infrastructure new wok and non-housing repair and maintenance, down by 3.6% and 2.4% respectively.

However new housing saw an increase in construction output, up 2.3% in March. But despite this recovery, overall construction output for new housing is down on an annual basis, decreasing by a significant 9.9%.

The output figures for all new work output saw a decline in annual growth — down 8.5% in March, with a contraction of 0.7% down between February and March. All repair and maintenance output increased at an annual rate of 7.3% in March 2024, but was down 0.1% month on month.

Quarterly construction output saw a decrease of 0.9% in the first quarter of the year (Jan to Mar 2024) compared with the fourth quarter of 2023. This came solely from a decrease in new work (down 1.8%), as repair and maintenance increased by 0.3%.

Aprao — a property development technology company — chief executive Daniel Norman said  “After falling by almost 2% in February, it will be frustrating for many that March saw monthly construction figures fall again, especially when forecasts suggested the data would show positive growth.

“However, the numbers specific to new homes paint a more promising picture with output actually increasing on the month.

“This points to a potentially brighter construction picture for the coming months, and will certainly be welcome news to the incumbent political parties ahead of a general election campaign in which the delivery of new homes is going to be a central theme.”

Overall, the wider UK economy emerged from recession growing by 0.6% between January and March, the fastest rate for two years, according to the ONS. 

Services lifted 0.7%, production lifted 0.8%, while construction fell 0.9% over the quarter.