Private new housing was the largest contributor to a monthly increase in all work in August 2020, according to the latest ONS data.
New work increased by a record 17.5% (£3,362 million) in the three months to August 2020, the largest single contributor to which was private new housing, which grew by a record 34.9% (£1,915 million).
Monthly construction output growth slowed to 3.0% in August 2020, following record monthly growth of 21.8% in June 2020 and growth of 17.2% in July 2020.
This is the fourth consecutive month of growth in all work since the large fall in construction output in April 2020, though the level of output remains 10.8% (£1,509 million) lower in August 2020 when compared with the level in February 2020, before restrictions were introduced as a result of the coronavirus.
Construction output grew by a record 18.5% in the three months to August 2020 compared with the previous three-month period, following 10 consecutive periods of decline; this growth was driven by record three-month on three-month growth in both new work (17.5%) and repair and maintenance (20.3%).
The increase in new work (17.5%) in the three months to August 2020 was because of growth in all new work sectors apart from private industrial, which fell by 6.5%; the largest contributor to the growth was private new housing, which grew by a 34.9%.
Construction output grew by a record 18.5% (£5,440 million) in the three months to August 2020, compared with the previous three-month period. This was because of increases in every sector apart from private industrial new work, which fell by 6.5% (£65 million).
Brian Berry, Chief Executive of the FMB, said: “A busy summer of home upgrades has been a welcome boost for the building industry but growing concerns about the strength of the economy might affect consumer confidence.
“The latest State of Trade data from the FMB shows that four in five builders are predicting material costs to increase in the months ahead. Given growing Brexit concerns it will be important that the Government works with the industry to ensure that supply chains aren’t disrupted. Any future delays and increase in costs would impact on the scope for the industry to ‘build, build, build’ our way to recovery.”
