Monthly construction output down
Monthly construction output is estimated to have decreased 1.7% in volume terms in January 2023; this is the weakest monthly growth since June 2022 (negative 2.0%) and the lowest monthly value in level terms (£14,841 million) since February 2022 (£14,719 million).
Anecdotal evidence continued the narrative around economic uncertainty leading to delays, cancellations, and less work being requested by customers; this has particularly contributed to an ongoing slowdown of work in the housing sector.
The decrease in monthly construction output came from a decrease in new work (4.0% fall), partially offset by an increase in repair and maintenance (2.0%) on the month.
Further anecdotal evidence highlighted the mixed impact of heavy rainfall in the first two weeks of January, with outdoor work being affected negatively, but repair and maintenance work seeing an increase because of the weather.
At the sector level, five out of the nine sectors saw a fall in January 2023, with the main contributors to the monthly decrease seen in infrastructure new work and private new housing, which decreased 6.5% and 3.0%, respectively.
Alongside the monthly decrease, construction output saw a decrease of 0.7% in the three months to January 2023; this follows four periods of consecutive growth in the three-month-on-three-month series; the decrease came solely from a fall in new work (1.2% fall), as repair and maintenance saw an increase (0.3%).
Read the full BEIS construction dashboard here.