Construction output in the UK fell in January compounding a similar decrease in activity in December last year.
The 0.2 per cent drop in monthly output was mainly due to a fall in new work (0.7 per cent), whereas repair and maintenance (R&M) grew by 0.4 per cent, according to the ONS.
Construction professionals blamed the result on bad weather including heavy rain, snow and storms.
By sector, one-third (three out of nine) saw output drop off in January, with the worst results in new private commercial and new private housing work, which fell by 6.1 per cent and 1.8 per cent, respectively.
“January’s 0.2 per cent dip in output, following an equivalent fall in December, serves as a warning that confidence among some developers remains fragile,” said Clive Docwra, managing director of property and construction consultancy McBains.
“In particular, the industry will be concerned to see private commercial new work falling by more than 6 per cent and private housing new work by 1.8 per cent.
“The worry is that any longer-term stagnation in the wider economy risks having an impact in terms of investor uncertainty, which may lead to further projects being put on hold.”
However, construction output is estimated to have increased by 0.4 per cent in the three months to January due to a rise in new work (1.4 per cent), as repair and maintenance fell by 0.9 per cent.
The result came solely from November 2024 (0.6 per cent).
Docwra added: “The government’s Planning and Infrastructure Bill, published earlier this week, contains welcome measures to speed up the planning system, and the industry will hope this injects more confidence among developers and investors in the months ahead.”
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