Construction output and notably housebuilding figures present encouraging progress, in response to the newest data from the ONS.
Monthly construction output is estimated to have grown by 1.9% in quantity phrases in May 2024; this follows a fall of 1.1% in April 2024.
The predominant contributors to the month-to-month improve had been a 2.8% improve in whole new housing, with each personal and public new housing growing on the month.
Commenting on the newest numbers Beard Construction finance director Fraser Johns mentioned: “Although newer PMI data exhibits simply how unstable the sector is, the information that each personal and public new housing is main this cost will likely be welcome to the many who depend on this sector. It is an actual instance of the resilience we proceed to see from companies throughout UK construction.”
He added: “Until we see output and new orders growing persistently month-on-month, we shouldn’t take something as a right although. With the election now settled, the hope is we will all choose again up and proceed to construct momentum throughout the second half of the yr. As we see borrowing situations enhance, with a possible base fee reduce in the close to future, this may definitely allow extra purchasers to push forward with plans.
Q New Homes director Michael Wynne echoed the constructive sentiment: “Construction has gone from zero to hero in the house of only one month, transferring from the being the weakest to the strongest sector of the economic system in May.
“The bounce in output can solely be partly defined by the distinction between May’s good climate – which was formally the warmest on document – and the rain-soaked April, which delayed work on many constructing websites.”
He added: “Levels of latest housebuilding spiked by 2.8% throughout the month, and whereas that is very welcome it’s price remembering that this determine is flattered by comparability to the low ranges seen throughout the first a part of the yr.”
He added: “A greater take a look at of the market’s well being will come over the coming month, as housebuilders digest the reforms introduced by the incoming Government and we anxiously await the Bank of England’s subsequent rate of interest resolution at the begin of August.
“The begin of an rate of interest reduce cycle ought to unleash a surge of pent-up demand from each builders and homebuyers – which can decide whether or not as we speak’s constructive data is a blip or a bounce-back.”
