Construction Recovered to Pre-Pandemic Level in November 2020

THE LEVEL of construction output in November 2020 was 0.6% above the February 2020  tidemark – signalling UK construction’s recovery to pre-pandemic levels of output.

Repair and maintenance work was 7.4% above February’s level while new work was 3.1% below its pre-pandemic level.

Overall, construction output grew by 1.9% in November 2020 compared to the previous month stemming from a 3.5% increase in new work, according to the latest figures published by the Office for National Statistics (ONS).

November’s growth more than offset the 0.6% fall in repair and maintenance.

November 2020 Construction Output

The month’s increase was the seventh consecutive month of growth since the record decline (40.7%) in April 2020.

The monthly increase in new work in November 2020 came from growth in all new work sectors apart from public new housing and public other new work, which fell by 2.4% and 2.8% respectively.

The monthly decrease in repair and maintenance (0.6%) in November 2020 was because of a 6.0% fall in private housing repair and maintenance, despite growth of 5.7% in public housing and 1.9% in non-housing repair and maintenance.

Construction output grew by 12.4% in the three months to November 2020 compared with the previous three-month period, because of growth in both new work (11.9%) and repair and maintenance (13.2%).

INDUSTRY RESPONSE

Back with a bang

Gareth Belsham, Director of the National Property Consultancy and Surveyors Naismiths, said: “Construction barely skipped a beat in November as the other major sectors of the UK economy slid into reverse. But construction’s continued expansion represents much more than just the bragging rights of the only industry still growing.

“Growth has extended to a seven-month streak and total construction output has powered back past its pre-pandemic level for the first time. That impressive turnaround is being driven largely by the white-hot growth in infrastructure work, which is now up over 9% on its February level as the industry gets stuck into a series of major public infrastructure programmes. Private sector housebuilders are also on a roll, with their subsector surging by £124millon compared to its February level.

“But for all the headline-grabbing successes, there are weak spots in the industry too. Output in the commercial property sector is flatlining and public sector housebuilding continues to contract.

“Overall there is much to cheer here. Construction is once again a £14bn industry, and sites remain open even during the latest national lockdown. Strict social distancing rules are pegging back productivity as fewer people are allowed on site at any one time, and interruptions to the supply chain are causing delays and cost pressures.

“Yet for all that, construction is back with a bang and providing the one bright spot in the UK’s darkening economic outlook.”

>> Read more construction data in the news