Development output fell by 0.5 per cent in August as the quantity of latest work within the sector decreased.
Figures from the Workplace for Nationwide Statistics (ONS) present that new building work throughout the UK fell by 1.5 per cent within the month, whereas restore and upkeep work grew by 1.0 per cent.
The drop follows the same decline in output within the earlier month, when it fell by 0.4 per cent, in line with revised figures. The ONS had beforehand stated there was a 0.5 per cent decrease.
Nonetheless, longer-term developments recommend a extra constructive image, with output growing by 0.9 per cent within the three months to August, because of development of two.4 per cent in June.
And August’s output represents development of two.3 per cent in contrast with the identical month in 2022.
5 of the 9 building sectors included within the evaluation noticed a drop in output in August 2023. The ONS stated the “most important contributors” to the lower have been personal industrial work and personal new housing, the place output fell by 4.1 and 1.4 per cent respectively.
Figures from the S&P International/CIPS UK newest Buying Managers’ Index (PMI) also showed a recent decline in commercial work and housebuilding.
The ONS figures symbolize month-to-month estimates of chargeable output for constructing and civil engineering work carried out within the related interval.
Kelly Boorman, nationwide head of building at RSM UK, stated: “This month’s newest lower in building output doesn’t come as a shock, and displays the continuing slowdown within the residential market in addition to market sentiment.
“The information is lastly exhibiting that the beforehand sturdy pipeline of labor is drying up post-Covid, with the business not sure about its future after working by way of main backlogs of labor.
“The extended weakening within the residential market is more likely to proceed, attributable to rates of interest and inflation inflicting market uncertainty for each contractors and the patron.”