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Private Housing Boosts Recovery in Construction Output

The latest ONS data is suggesting that construction output continues to recover, thanks to private housing gains that offset a reduction in other types of work.

Construction output continues to improve after a weak start at the beginning of the year. It increased by 2.1% in the third quarter, after a decrease of 1.6% in the first quarter and an increase of 0.8% in the second quarter.

The three-month on year growth of 9.6% and 6.2% in new private housing work and nonhousing maintenance and repair for September 2018 surpassed the 11.3% and 5.3% reductions in new public and private commercial work respectively.

The third quarter of 2018 was driven by a 2.8% increase in all new work and a 1.0% increase in maintenance and repair.

Between August and September 2018, construction output increased by 1.7%, drive by a 2.8%  rise in all new work. Thus was partly offset by a 0.3% decrease in maintenance and repair.

Structural Defects Insurance

Construction output increased by 1.7% between August and September 2018 due to a 2.8% increase in all new work. This was partly offset by a fall of 0.3% in repair and maintenance.

The September 2018 level for the all work series achieved  £13,995m, which is a record high since January 2010, when monthly records began.

In the third quarter, construction output increased by £872m compared with the second quarter. Private housing new work was the greatest contributor to growth with a £507m increase between Q2 and Q3.

Compared with the month before, construction output increased by £233m in September.

The most noteworthy increases were for infrastructure and public housing new work, which went up by £125m and £81m respectively in September.

Compared to September 2017, construction output was up by 3.0%. This increase was primarily due to a 3.4% growth in all new work and 2.4% growth in maintenace and repair. The strongest contributions came from private housing new work and infrastructure which rose by 9.9% and 10.7% respectively.

Specialists in Construction Insurance

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