Construction growth helps bring UK out of recession

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Construction output grew by 1.1% in January 2024, but in the three months to January 2024 construction output fell by 0.9% confirming sentiment of many who work in the Construction industry that new work has been flat before Christmas. 2023. but green shoots of growth seem to spread a lighter mood for construction firms.

Green shoots of growth seem to spread a lighter mood for construction firms as services output grew by 0.2% in January 2024 after a fall of 0.1% in December 2023, and was the largest contributor to the growth in monthly GDP. Construction output also grew in January 2024, by 1.1%, after a fall in December 2023, of 0.5%. While production output fell by 0.2% in January 2024 after a growth of 0.6% in December 2023.

The data from the ONS shows in January 2024, monthly construction output is estimated to have increased 1.1% in volume terms. This follows three consecutive falls in monthly construction output which has been confirmed by users of nationaltradesmen.co.uk reporting lack of jobs and new contracts starting around Christmas in the UK.

The slight increase in monthly output in January 2024 came from increases in both new work (1.1%) and repair and maintenance (1.2%) which is a much needed boost for the industry.

Six out of the nine construction sectors saw an increase on the month; the main contributors to the monthly increase were private new housing, and non-housing repair and maintenance, which increased 2.6% and 1.9%, respectively.

As shown in the below graph growth in repairs and maintenance surged while new work and all work showed slight growth increasing the confidence in construction in the early parts of 2024.

Monthly all work index, chained volume measure, seasonally adjusted, Great Britain, January 2010 to January 2024
Monthly all work index, chained volume measure, seasonally adjusted, Great Britain, January 2010 to January 2024

All construction data are is from our Monthly Business Survey from the ONS For January 2024, the survey turnover response rate for construction was 75.0%. We would expect this to increase over time as more responses are received and any new data will be included in future monthly gross domestic product (GDP) releases. For context, the average turnover response rate in 2022 now stands at 94.6%.

Further detail on construction output growth rates can be found in our Construction output in Great Britain: January 2024 bulletin.