Latest GDP figures show that the UK economy as a whole shrank by 0.3% in August, but GB construction output was up by 0.4%.
And it turns out that August was construction's second successive monthly increase 鈥� previously published numbers for July showing a fall have now been revised.聽 A month ago the Office for National Statistics (ONS) said that July鈥檚 construction output in Great Britain was down 0.8% by volume compared to June. It has now revised that and says July was actually up by 0.1%.
August 2022 construction output reached 拢15,011m, behind only May 2022鈥檚聽 拢15,035m in the record books. (The records only go back 12 years.)
The increase in monthly construction output in August 2022 came solely from an increase in new work (1.9%), as repair & maintenance saw a decrease (2.0%) on the month.
Infrastructure and private industrial were the biggest growers in new work, up by 5.3%, and 4.3% respectively.
The level of construction output in August 2022 was 3.2% (拢461m) above the February 2020 pre-coronavirus level; new work was 0.7% (拢69m) below its February 2020 level, while repair & maintenance work was 10.6% (拢530m) above the February 2020 level.
Alongside the monthly increase, construction output saw a slight increase of 0.1% in the three months to August 2022; this came solely from an increase seen in new work (1.6%) as repair & maintenance saw a decrease (2.4%).
Anecdotal evidence shared by the ONS indicates that the warm weather in July inhibited construction growth but as the heatwave moderated towards the end of August, activity picked up a little.
Clive Docwra, managing director of construction consultant McBains, said: 鈥淭he moderate growth witnessed in August shows the construction industry is holding firm during a difficult period.
鈥淚t is encouraging that the rise in output is being driven by new work, and the fact that infrastructure, private industrial and private housing new work increased by 5.3%, 4.3% and 1.7%, respectively will be a tonic to the industry.
鈥淗owever, there are still bumps in the road to be negotiated.聽 Material price inflation may be starting to fall, according to recent figures and from what our clients are telling us, but the cost of construction remains high and further volatility over the medium term can be expected as factors such as Russia鈥檚 invasion of Ukraine and the energy crisis bites harder.聽
鈥淎nd despite the increase seen in private investment, the risk of recession and high interest rates means some investors are still holding the pause button until the economic picture becomes much clearer.鈥�
Mark Robinson, chief executive of public sector procurement agency Scape, said:聽 鈥淭he construction industry continues to defy wider market conditions to contribute to what is now a near year-long run of growth in the sector. As we come out of peak season however, it鈥檚 clear that we are set for a challenging winter as inflation continues to affect costs for private and public sector projects alike.鈥�
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