Rise driven by uptick in repair and maintenance work

Construction output edged up in September driven by a rise in repair and maintenance work, the latest official figures from the Office for National Statistics have said.

Output rose by 0.4% on the back of a 2% rise in repair and maintenance work reversing overall output declines in July and  August.

But new work fell by 0.8% although the severity of the fall was offset by a 3% rise in new commercial work.

Bagged cement shutterstock

Source: Shutterstock

Repair and maintenance work helped reverse two months of decline in output

The finance director at regional contractor Beard, Fraser Johns, said: 鈥淭he message remains the same: we must remain open and transparent in our conversations with clients and stakeholders, all while doing what we can to minimise pressure on cost plans.鈥�

The ONS said the annual rate of construction price inflation has now slowed to 3.9% in the 12 months to September, down from the record annual price growth in May 2022 of 10.4%.

Despite tentative signs of an improvement, Clive Docwra, the boss of consultant McBains, warned: 鈥淥ur clients tell us that borrowing costs are still deterring some investments, and while interest rates may have peaked, the longer-term outlook remains uncertain.鈥�