Construction work jumped by 1.6% in June to the highest level of output since records began, data from the Office for National Statistics shows.
Monthly output hit £15,6bn, driven by rises in new work, up 2%, and repair and maintenance, up 1.1%, to the highest level since records were kept in this form in January 2010.
The rebound in June follows three consecutive falls in monthly construction work. Anecdotal evidence suggests that the warm weather in the month helped projects progress at pace.
Over the three months to June, output lifted 0.3%, with the largest contributions coming from new infrastructure work, up 6.1%, and non-housing repair and maintenance, up 2.7%.
The largest quarterly drag on the sector was new private housing work, which fell 3.3%.
However, new work orders in the second quarter fell by 11.3%, weighed by a fall in infrastructure contracts, which slumped by 26.5%.
But over the second quarter, new housing orders rose by 3.9% overall. This came from private projects, up 3.6%, and public contracts, up 5.8%.
The government data body says evidence from firms is that the overall fall in new orders is due to “the cost-of-living crisis and the related slowdown in the wider economy”.
Beard director Mike Hedges says: “A rise in output, driven by an increase in both new work and repair and maintenance is positive news for the industry to wake up to, and certainly mirrors what we’re seeing on the ground at Beard.
“A strong June meant quarterly output increased in the second quarter, which highlights the positive momentum that seems to be building for the second half of the year.
Hedges adds: “We’ve seen firsthand this consistent trend of clients looking to improve and repair, rather than replace.
“For some, this may reflect the tougher borrowing conditions and access to credit that is preventing them from committing to new construction projects.
“The continued easing of inflationary pressures will certainly help in improving the outlook for the second half of the year, especially in sectors such as housebuilding where higher interest rates have had the biggest impact on demand.”
Charles Russell Speechlys construction law partner David Savage adds: “Following three months of consecutive decline, the construction sector saw a boost in June, reaching the highest level of construction output since records began.
“Although the cost of materials remains high, new work and an increase in repair and maintenance seems to have carried momentum as we head into the summer, instilling a new sense of confidence across the sector.
“While no doubt a positive picture, high interest rates and costs mean that some developers and investors are still delaying new projects, as the industry continues to face challenges due to the wider economic environment.
