Construction output in September reached its highest level since the onset of the coronavirus pandemic in March, official figures have revealed.
Output grew by 2.9% compared to August, driven by increases in new work (2.7%) and repair and maintenance (3.4%). It was the fifth consecutive month of growth but the lowest rise in that period.
While infrastructure and private new housing returned above their pre-pandemic levels of output, all other types of work have yet to recover and the level of construction output in September 2020 was 7.3% below that of February 2020.
Quarterly construction output grew by a record 41.7% in the July to September 2020 quarter, compared to the April to June 2020 quarter.
New orders grew by a record 89.2% in the third quarter 2020, compared with the previous quarter, following a record quarterly fall of 54% in quarter two of 2020.
Commenting on the figures, Fraser Johns, finance director at Beard, said: “The headline figures of quarterly record growth in all areas of work is welcome news.
“But what is more telling is the monthly rate of growth, which is slowing down consecutively throughout the period, with September showing the lowest rate of growth at 2.9%.
“What we saw in Q3 was the return of a lot firms that had closed their sites in Q2, and projects that were put on hold getting the green light. But also the sector as a whole had become much better at dealing with Covid-19 and was able to get back to business to a certain extent.
“The slowdown in the rate of growth in September possibly reflects the level of uncertainty at that time across the economy as the prospect of a tough winter ahead loomed. So it may be that with the positive news of a vaccine in recent days that uncertainty dissolves as we head through Q4.
“But at the same time the likelihood of a no-deal Brexit is also drawing closer and what that means for the availability of labour onsite, as well as challenges in the supply chains we’re seeing, could hamper efforts to go above and beyond pre-covid levels of growth.”
Caroline Gumble, chief executive at the Chartered Institute of Building (CIOB), said: “We at the CIOB have been consistently impressed with how the construction industry has stayed strong throughout these uncertain times. The nature of the vital work that the sector does – from building social housing to new hospitals – requires many people to continue pushing projects forward throughout local and national lockdowns. New ways of working for the rest of society has created a fresh demand for different spaces, a challenge which our industry has welcomed. The CIOB looks forward to continuing to support the sector, helping to deliver quality in construction, and playing our part as a key driver in regional and national economies.”
