Construction new work output rose over the 12 months to Q2 2022. A nearly 2% increase from the level at Q2 2021 underlines the solid industry momentum reported in the Office for National Statistics’ latest construction output data release. Housing, private industrial and the repair and maintenance sub-sectors posted output growth on a yearly change basis at Q2. Infrastructure and private commercial both recorded notable falls in output between Q2 2021 and Q2 2022, although the commercial sector posted growth on a single-month to single-month basis over the year. The fillip to industry output provided by the repair and maintenance sector since the end of 2020 is now beginning to dissipate; however, the contribution it still makes to overall output is vital.

Construction sector sentiment remained broadly unchanged at the start of Q3 which, in the circumstances and against the emerging economic backdrop, could be viewed as something of a relief rather than grounds for outright optimism. The growing array of headwinds stayed in view, with surveys reporting increasing concerns about the 12 months ahead. At the same time, though, the mood is also reflective of construction output that continues to offer favourable levels of activity for the industry’s capacity. Sector concerns typically reference the now perennial issues facing business operations and project delivery, coalescing around the themes of people, supply chain inputs, and now heightened economic and political uncertainty.

Read more…