The 0.6% fall in repair maintenance and improvement work within the building industry in the third quarter of 2024, according to newly released figures from the Office of National Statistics, reflects growing consumer unease, says the Federation of Master Builders (FMB).
Construction output is estimated to have increased by 0.8% in Quarter 3 (July to Sept) 2024 compared with Quarter 2 (Apr to June) 2024; this came solely from an increase in new work (2.0%), as repair and maintenance fell by 0.6%.
Monthly construction output is estimated to have grown by 0.1% in volume terms in September 2024; this came solely from a rise in repair and maintenance (0.4%) as new work fell by 0.2%.
At the sector level, four out of the nine sectors grew in September 2024; the main contributor to the monthly increase was private housing repair and maintenance, which grew by 1.3%.
Total construction new orders fell 22.0% (£2,722 million) in Quarter 3 2024 compared with Quarter 2 2024; this quarterly decrease came mainly from private new housing and private commercial new work, which fell 31.3% (£861 million) and 20.8% (£786 million), respectively.
The annual rate of construction output price growth was 2.0% in the 12 months to September 2024.
Brian Berry, Chief Executive of the FMB commented: “The positive growth in the construction sector of 0.8% in the third quarter of 2024 is a welcome signal that the construction industry is starting to show signs of recovery, after what has been a difficult few years.
“The 2% growth in new work on Q2, is indicative of growing market confidence. However, the 0.6% fall in repair and maintenance shows the building industry is not out of the woods yet, and with the economy barely growing this could represent consumers being careful with their spending.
“New orders on housing are particularly worrying, given their significant fall over the quarter, this is despite the Government's efforts to build 1.5 million homes.
“The new Government have made early announcements that they are prioritising housebuilding, with new targets set, and significant planning reforms announced. The Q3 data released today suggests the construction industry has reacted positively, but the Government must now keep up the momentum.
“A long-term plan is needed to tackle the ongoing skills crisis, as well as a concerted effort to diversify the housing market by supporting SME builders, if the Government is serious about meeting its ambitious goals.”
