Construction output dropped by 0.6% in the three months to November 2023, data from the Office of National Statistics shows.
Monthly construction output is estimated to have decreased 0.2% in volume terms. The monthly value in level terms in November 2023 stand at £15,571 million.
The ONS data shows that the decrease in monthly output came solely from a decrease in new work (2.0% fall), while repair and maintenance increased by (2.1%).
Three out of the nine sectors saw a fall in November 2023 with the main contributors to the monthly decrease seen in private new housing and infrastructure new work which decreased 3.9% and 2.0% respectively.
Anecdotal evidence suggested effects of adverse weather including heavy rainfall and strong winds in November 2023 led to delays in planned work.
Terry Woodley, MD of Development Finance at Shawbrook, said: “Construction output lagged in November, with both house building and commercial construction struggling to build momentum following sustained high interest rates and rising costs.
“Though December’s figures may be similar, 2024 holds a more positive outlook with interest rates expected to either hold or fall which is encouraging more confidence in the sector. Developers should continue to be resilient and use this as an opportunity to consider where they can make changes to their business strategy to ensure it’s robust against persistent challenges.”
Fraser Johns, finance director at Beard, said: “As we have seen throughout the year, November’s snapshot highlights the ongoing theme of clients prioritising improvements to existing building stock, rather than committing to new projects. Tighter access to credit, as well as tougher borrowing conditions are certainly contributing factors, while general uncertainty and a lack of confidence in the current climate is also having an impact. Given the turbulent weather seen too, it certainly makes sense to see construction output dampen in November.”
