Monthly construction output is estimated to have experienced a flat growth (0.0%) in volume terms in November 2022, according to the latest data released by the Office for National Statistics (ONS).
This follows a downwardly revised increase of 0.4% in October 2022.
ONS data shows that this flat growth is due to a decrease in new work (0.4% fall), offset by an increase in repair and maintenance (0.6%) during the month.
Iain Crawford, CEO of Alliance Fund, said: “A softening in construction output during November was always likely following what is traditionally a stronger summer period, but particularly with the addition of growing uncertainty surrounding the wider property market.
“With both the construction of new housing and new work seeing a reduction in output, it appears as though the sector may have paused for thought more prematurely than usual, in order to fully consider the implications of the wider economic backdrop and how best to negotiate them in 2023.
“This trend is likely to remain until the sector shifts fully through the gears this year, but we don’t foresee any notable long-term decline in construction output in 2023.”
At the sector level, the main positive contributors to the flat growth were seen in infrastructure new work and non-housing repair and maintenance, which increased 4.2% and 2.4%, respectively.
Meanwhile, the main negative contributors were seen in private new housing and private housing repair and maintenance, falling 4.8% and 1.7%, respectively.
The large decrease in private new housing follows an increase of 2.3% in October 2022 (£81m), whereby private new housing was the largest contributor to the increase to monthly growth in October 2022.
However, the level of construction output volume in November was 3.1% (£452m) above the February 2020 pre-pandemic level.
New work was 3.4% (£327m) below its February 2020 level, while repair and maintenance work was 15.5% (£778m) above the February 2020 level.
Construction output saw an increase of 0.3% in the three months to November 2022.
The increase came solely from growth in new work (1.3%) as repair and maintenance saw a decrease of 1.2%.
