Figures from the Office for National Statistics (ONS) reveal more positive news for construction in the form of increased output in the three months to November 2018.
The rate of output in the three-month on three-month series for all work increased by 2.1% in November, continuing the trend of recovery for the construction sector which has seen activity in the industry bounce back during the second half of 2018.
At the start of the year, the picture looked bleak, but increased output in the third quarter of the year and beyond has provided the sector with good news.
The three months to November also revealed increased output from the 1.2% rise in the three months up to October.
It is encouraging that the three-month on three-month series continues to reveal increases in output because it provides the most comprehensive picture of the sector’s performance and is not skewed by a volatile month.
Indeed, since April 2018, output has shown an upward trend, with five of the last seven months experiencing growth.
For the month of November, output grew by 0.6%, which resulted in the total value of construction output exceeding £14 billion for the first time since 2010 when the monthly records began.
The reasons for this growth were strong performances in private new housing, private commercial new work, and public housing repair and maintenance, which enjoyed increases of 3.1%, 2.3% and 5.8% respectively.
ONS data didn’t reveal good news across the board though; there were factors that contributed to depressing growth, such as a sharp decline of 5.8% in public other new work, and a 2.5% fall in infrastructure.
For the three months to November, the increase in activity was driven by a rise in all new work of 3.4%, though this was offset slightly by a 0.4% decrease in all repair and maintenance.
Private new housing and infrastructure grew by 4.9% and 6.5% respectively in the three months to November, giving hope that construction output will finish 2018 on a strong note.