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Construction output climbs to pre-pandemic level

Construction output in November 2020 was 0.6% higher than it was in February 2020, taking it above pre-pandemic levels for the first time, official figures show.

While repair and maintenance work was 7.4% above its pre-pandemic level for the month, new work was still 3.1% below.

The news came as output grew by 1.9% in the month-on-month all work series in November 2020, thanks to a 3.5% increase in new work. Repair and maintenance dropped by 0.6%.

The monthly decrease in repair and maintenance in November 2020 was down to a 6% fall in private housing repair and maintenance, despite growth of 5.7% in public housing and 1.9% in non-housing repair and maintenance.

Construction output grew by 12.4% in the three months to November 2020, compared with the previous three-month period, because of growth in both new work (11.9%) and repair and maintenance (13.2%).

Total construction output in November 2020 stood at £14bn.

Commenting on the output figures, Fraser Johns, finance director at Beard, said: “For the first time we’re seeing output returning to pre-pandemic levels which is clearly cause for cheer, particularly as November was a lockdown month.

“In recording a seventh consecutive month of growth, the construction sector has bucked the national trend where the economy shrank overall during the period. But what is also encouraging is the reverse in the slow rate of growth that we’ve seen, going from 1.0% in October to 1.9% in November.

“But while we hope that the vaccine rollout and a Brexit trade deal in place should lead to less uncertainty broadly, we are still faced with new strains of the virus and a national lockdown, with the impact that has with schools closed and restrictions at every level.

“Realistically the fallout for businesses from Brexit could yet take months to fully understand which means an element of volatility in the short to medium term. However, the new business secretary’s open letter to the construction industry is welcome reassurance in this current period.

“As we now face several more weeks of lockdown, it’s clear that the construction sector has had to adapt but that keeping sites open and projects going was the right thing to do, for jobs and the wider economy.”

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