ONS: Construction output up 3.5%

Jake Carter

January 14, 2022

Monthly construction output increased by 3.5% in volume terms in November 2021, the largest monthly rise since March 2021, according to the Office for National Statistics (ONS).

The increase came solely from an increase in new work (5.7%) as repair and maintenance saw a slight decline of 0.2% on the month.

Because of the strong November 2021 monthly growth and minimal revisions to previous months, the level of construction output in November 2021 was 1.3% (£197m) above the February 2020 pre-pandemic level.

Although new work was 1.6% (£148m) below the February 2020 level, repair and maintenance work was 6.9% (£345m) higher.

The recovery since the falls at the start of the pandemic was mixed at a sector level, with infrastructure 49.3% (£923m) above, and private commercial 28.0% (£698m) below the respective February 2020 levels in November 2021.

Construction output rose 1.6% in the three months to November 2021, the first three-monthly increase since July 2021, with similar increases seen in both new work, and repair and maintenance (1.5% and 1.6% respectively).

Fraser Johns, finance director at Beard, said: “The growth in output in November is certainly encouraging that the construction sector is moving in the right direction.

“A major positive is that in the three months prior to November, output in the sector increased and a stable sustained period of growth is key for the industry.

“As ever, client confidence plays an important role, and demand for new work was the driving force as construction recorded a positive month.

“To ensure this confidence doesn’t dip, collaborating with suppliers and clients is essential. To build these crucial relationships, Beard has implemented weekly discussions with key partners in the supply chain.

“These sessions allow open two-way dialogue, so if there are any issues on the horizon, a solution can be found.

“Close collaboration with suppliers has been, and will continue to be absolutely critical in the coming months.

“When there are inevitably delays for some materials, by working together creative solutions can be found that ensures projects are kept on track.”

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