Construction Grows 0.4% In August

More builders were slipping on their JCB wellington boots in August, after recent figures show construction output grew by 0.4 per cent that month. 

The Office for National Statistics (ONS) reported there was a 1.9 per cent increase in new work in August. However, repair and maintenance fell by two per cent from July. 

Speaking with Construction Enquirer, Mark Robinson, group chief executive of procurement group Scape, said: “The construction industry continues to defy wider market conditions to contribute to what is now a near year-long run of growth in the sector.”

According to the ONS data, infrastructure, private industrial and private housing new work helped to bolster the industry in August, with projects increasing by 5.3 per cent, 4.3 per cent, and 1.7 per cent respectively compared with the previous month. 

Construction output totalled £461 million, which is 3.2 per cent above the level seen in February 2020, prior to the coronavirus pandemic. 

While this is good news, Mr Robinson warns the sector the winter could be “challenging”, due to rising inflation and energy prices.

He welcomed the government’s energy support package, but added: “Project teams will need to work in close collaboration to manage costs as projects and pricing evolve.”

The Energy Bill Relief Scheme will provide a discount on gas and electricity unit prices from October 1^st 2022 to March 31^st 2023 for businesses. The reductions will be automatically be applied to bills by suppliers.  

Public sector building developments will also be “vital for the wellbeing of the construction industry”, said Mr Robinson, with the sector providing more than £1 billion of social value in 2021.