May 2021 Construction Output Fell for Second Month

MONTHLY CONSTRUCTION OUTPUT fell in May 2021 by 0.8% compared with the previous month, falling to £13,960 million, and follows the 0.7% monthly decline in April 2021, according to Office for National Statistics (ONS).

April and May’s slower monthly growth follows exceptionally strong growth in February and March 2021 (3.7% and 4.7%) respectively.

May’s fall represents a decrease of £115 million compared with April 2021. It stemmed from a reduction in most sectors. The ONS suggests bad weather in May (the fourth wettest May on record) was a contributing factor causing lost construction days.

Despite May’s fall, the level of construction output is 0.3% (£43 million) above its February 2020 pre-pandemic level.

There is a mixed profile of recovery for different types of work. Repair and maintenance is 7.5% (£363 million) above the February 2020 level and this type of work has almost fully recovered to levels seen before the pandemic, with only public housing the exception.

Meanwhile, overall, new work has still yet to recover and is 3.5% (£320 million) below the pre-pandemic level. However, in the new work category, infrastructure and private new housing have both recovered to pre-pandemic levels.

Three-month Figure

Construction output grew by 6.3% (£2,512 million) in the three months to May 2021. Outside of August 2020 to November 2020 this is the largest growth in the three-month on three-month series since monthly records began in January 2010, the ONS reports.

INDUSTRY COMMENT

Brian Berry, Chief Executive of the Federation of Master Builders (FMB)

Brian Berry, Chief Executive of the FMB, said: “Construction output fell in May, pointing to a fragile economic recovery for Britain’s builders. I am particularly concerned by the drop in repair, maintenance and improvement activities, given the high demand for home improvement works that builders are reporting.

“Action must taken to address the national building materials shortage, as this is restricting builders’ ability to build back better and greener. A recent FMB survey found that 93% of builders reported material price increases in Q1 2021, which is an untenable situation.

“Manufacturers, merchants and builders must work together to maintain the supply of products to independent merchants so that smaller builders can continue to improve, upgrade and green the nation’s homes.”

>>Read more about May 2021 construction output data