June jump in construction output ends three month decline
Fresh projects sparked the revival, experiencing a notable increase of 2%, while the progress in repairs and upkeep lagged behind with a more modest growth of 1.1%.
Informal evidence gathered from monthly business reports indicated that the pleasant weather had a positive impact on productivity in various industries.
The progress in infrastructure development and non-residential repairs and upkeep contributed to the monthly growth, with an increase of 4.7% and 3.4% respectively.
The increase in June also rescued the overall quarterly performance from April to June, which slightly rose by 0.3%.
The growth for this quarter was entirely driven by a rise in repair and upkeep, while new projects experienced a slight decline.
Out of the nine areas, five experienced growth in the second quarter. The main drivers of this growth were the construction of new infrastructure and the repair and maintenance of non-residential buildings. These sectors saw an increase of 6.1% (£433m) and 2.7% (£246m) respectively.
The biggest detractor was the private construction of new homes, experiencing a decline of 3.3% (£324 million).
According to Mike Hedges, the chief of contractor Beard, the industry should be pleased to hear that output is increasing due to a surge in new projects and repair work. This situation aligns with what Beard is currently experiencing firsthand.
A robust month of June resulted in a rise in overall production for the second quarter, indicating a promising trend that appears to be shaping up for the latter half of the year.
We have personally witnessed a recurring pattern where clients prioritize enhancing and fixing rather than replacing.
For certain individuals, this might indicate the more challenging loan circumstances and availability of funds that are hindering them from engaging in fresh building ventures. Nonetheless, we are witnessing a stronger focus on maximizing the worth of their existing possessions, as well as reducing both inefficiency and the decrease of carbon emissions incorporated within those possessions.
