Construction output decreased by 0.2% in October 2018 compared with strong growth of 1.7% in September 2018, according to the latest ONS data.
The decrease in October 2018 was driven by declines in infrastructure (down 3.7%), public new housing (down 8.1%) and total repair and maintenance (down 0.8%); the largest contributor offsetting these decreases was private new housing, which grew by 2.4%.
Despite the slight month-on-month decline, construction output in the three months up to October 2018 was 1.2% higher than the previous three-month period; this growth was slower than in recent months, with a steady decline being seen from a 2018 high of 3.0% growth for the equivalent series in July 2018.
A historic high level of £9,221 million in the new work chained volume measure seasonally adjusted series was reached in October 2018; this represents the highest value seen since monthly records began in January 2010.
New orders grew by 3.4% quarter-on quarter in July to September 2018, with a strong increase in public other new work of 31.9% helping offset a 5.3% decline in housing new orders; despite this increase, levels remain below those typically seen over the last five years of new orders data.
When looking at Quarter 3 2018 compared with the same period one year earlier, most types of work are significantly down. This is driven by both a fall in new housing, private and public, and a large decrease in all other work.
Neil Knight, Spicerhaart Part Exchange & Assisted Move business development director, said, “The non-seasonally adjusted figures from the ONS show a continuing upward trend in the volumes of new build, both public and private sector, across the country. Despite the fears over Brexit it appears that the government’s plans to reach its new homes targets are starting to bear fruit as planning regulations are relaxed, and developers are able to build the homes that are needed in the areas they are most needed.
“Of course, we are heading into the most challenging time of the year for builders, but we have to see these latest figures as an encouraging sign. We are currently working with developers all over the country, on a huge variety of sites, which cater for many different housing needs, offering part-exchange schemes to help more people onto the property ladder. It is likely that the figures will be more subdued in the coming months, but with the amount of building that is already under way we have the impetus to take us into 2019.”
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