The monthly construction output in Great Britain decreased by 0.1% to £14,610m in volume in February 2022 compared to the previous month, according to the latest data by ONS.
The February dip follows an upwardly revised 1.6% increase in January and represented the first monthly decrease since October last year.
ONS’ monthly business survey for construction and allied trades found that the storms experienced between 16 and 21 February 2022 resulted in projects being delayed, as more working days were lost on sites and premises than normal for this time of the year.
Data showed a 0.5% decrease in repair and maintenance while new work saw a slight increase of 0.1% in the month.
The main contributors to the decline in February were infrastructure, and non-housing repair and maintenance, which decreased by 2.5% and 0.9% respectively.
The level of construction output for February was 1.1%, which equated to £155m and total more than the February 2020 pre-Covid level.
New work was 3.7% below pre-Covid levels which represented £354m, while repair and maintenance work was 10.2% above £509m.
Commenting on the latest data, Naismiths’ director of the national property consultancy and surveyors Gareth Belsham describes the decline as a “wobble rather than a worry”.
Belsham says: “February’s dip in output came after a barnstorming January, and it’s likely the figures were dragged down by the series of exceptionally strong storms that tore across the UK during the month and forced external construction work to cease for several days.”
“Nevertheless, the output data serves as a wake-up call, and a reminder that there’s nothing inevitable about the momentum that construction built up at the end of 2021 and into January,” he adds.
Meanwhile, McBains managing director of property and construction consultancy Clive Docwra says that the statistics are “a setback coming after a strong return in output over the last three months”.
Although Storms Eunice, Dudley and Franklin had an impact on work delays, Docwra explains that “more serious underlying concerns over factors such as energy price rises, disruption due to the Ukraine crisis and rising inflation are triggering nervousness both from investors and in the construction sector itself”.
Despite the monthly decrease, construction output saw an increase of 2.4% in the three months to February 2022, representing the strongest growth in a three-month series since June 2021 when it saw a 4.0% rise.
Similar increases were also seen in both new work, and repair and maintenance, totalling 2.2% and 2.6% respectively.
Beard finance director Fraser Johns says: “The February statistics need to be looked at in context. When looking back at a slightly longer-term view, a more positive picture emerges. In the three months to February, construction output grew at its strongest since the summer of 2021.”
Johns says it’s an “impressive achievement” that the sector’s output has recovered to pre-pandemic levels and “demonstrates the resilience of the sector”.
“The road to recovery is always going to have some bumps along the way, however, there were positive signs in February. New orders increased slightly which is a good measure of customer confidence.”
“To continue to build on this positive momentum, the sector will need to overcome some hurdles. The skills shortage is still an issue to overcome, and firms should look at hiring practices to improve diversity in the sector,” Johns adds.
