construction activity saw a modest lift in March, building on a revised 0.2% increase in February and recovering from a 0.3% decline in January. As a result, output for the first quarter remained flat compared to the previous three months. New work edged up by 0.9% during the quarter, while repair and maintenance activity slipped by 1.2%. Reports Contract Journal
Milder weather played a key role in supporting growth, with five out of nine construction sectors seeing an uptick in March. Leading the gains were infrastructure and private housing, which saw new work rise by 2.5% and 2.3% respectively.
Looking ahead, there are signs of stronger momentum, with new orders jumping 26.6% in Q1 — an increase of £2.4bn from the previous quarter — largely driven by a surge in infrastructure and private industrial projects.
While McBains managing director Clive Docwra welcomed the positive March data, he cautioned that the sector remains in recovery mode and it’s still too early to confirm whether a sustained turnaround is underway.
He added: “The industry will be worried that this week’s proposed immigration changes restricting skilled workers could seriously hit future work capacity – and the government’s housing targets too.
“A cut in interest rates next month would help give an injection of confidence in the industry during a period of uncertainty.”
Scott Motley, head of programme, project and cost management at AECOM, said: “A continued uptick in output suggests the sector may be entering a more stable period as it moves into what’s typically a busier time of year.
“While the improvement offers encouragement, maintaining momentum will be the sector’s number one priority as it continues to contend with wider economic pressures.
“The upcoming Spending Review is uniquely placed to give the sector long-term clarity over the major investment decisions that must be made in order to deliver the infrastructure we desperately need across the UK.”
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