Private housing work fuels rise in construction output

Construction output rose in October for the fourth successive month despite negative quarterly growth in the economy overall.

Data from the Office of National Statistics today shows monthly construction output rose 0.8% in October. 

The increase in output was driven by private new housing, which posted a 2.9% increase, while non-housing repairs and maintenance increased 1.7%.

Five out of eight areas of construction saw an increase, with falls in output in private industrial work, which fell 1.6% and infrastructure new work (1.2%). In monetary terms the value of construction work in the month was £15.25bn, the highest since records began in 2010, in part due to inflation.

In the three months to October, construction output grew 1.1%, driven by a 3.1% in new work, while repairs and maintenance fell 2.1%.

Data also out today shows Britain’s economy as a whole grew in October, with gross domestic product (GDP) rising 0.5%.

However, the economy shrank by 0.3% in the three months to October.

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David Savage, partner, at law firm Charles Russell Speechly, said the data showed construction is “holding strong during a difficult period.”

He said: “As the wider economy seems to be heading inexorably towards recession, the construction sector continues to demonstrate resilience in the face of the significant economic challenges and general uncertainty in both the UK and global economy.

“However, developers and investors are well aware of the challenges they face as we enter the winter period, with double digit inflation, structurally higher interest rates and continued construction labour shortages all cause for concern in the months ahead.”