Monthly construction output fell by 0.4% in October according to the latest figures from the Office of National Statistics. 

This fall was primarily driven by a decline in repair and maintenance, which was down by 1.3%. In contrast new work grew by 0.2%. 

This monthly decline follows a 0.1% increase in September. Overall the ONS said that four out of the nine construction sectors it monitors saw output fall in October, with the biggest drop in private housing repair and maintenance, down by 3.8%. 

One a quarterly basis though the picture was more positive, with construction output increasing 0.4% in the three month to October 2024, making it the fastest growing sector of the economy.

This increase though, was again driven by higher volumes of new construction work, which was up by 1.7%, with repair and maintenance work falling by 1.2%. 

This figures form part of the wider GDP figures published by the ONS. While construction output increased by 0.4% over the three months to October, services grew by just 0.1% and production output fell by 0.3% over this three month period. Overall the economy grew by just 0.1% over this period according to the ONS.

Bloom Building Consultancy director Charlotte Whincup says: “Construction has held onto its crown as the fastest growing industry in Britain’s shrinking economy, but its grip is loosening.

“Its growth of 0.4% in the three months to the end of October was respectable rather than rip-roaring, and comfortably above the feeble 0.1% expansion posted by the economy as a whole during the quarter.”

She adds: “Today’s official data confirms for the first time how badly things slowed in the weeks leading up to the Budget. Nearly half of the construction industry’s sub-sectors contracted during October, and output across construction as a whole shrivelled by 0.4% on the month.

“The data also shows just how divergent the fortunes of different parts of the industry have become. Commercial property is holding its own and demand from infrastructure projects remains strong, but housebuilding saw further declines in output.”

“All this underlines what a mountain the Government has to climb with the planning reforms it hopes will kickstart a flurry of housebuilding across the greenbelt.

“The high cost of land and planning red tape are only parts of the puzzle of course – the high cost of finance is another. If there is one ray of light from Britain’s shrinking economy, it’s that it may strengthen the Bank of England’s resolve to keep trimming interest rates in 2025. Making it cheaper for developers to buy land and build homes will go a long way towards re-energising the battered residential construction sector.”