{"id":110774,"date":"2022-05-12T14:06:45","date_gmt":"2022-05-12T13:06:45","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=110774"},"modified":"2022-05-12T14:18:14","modified_gmt":"2022-05-12T13:18:14","slug":"march-construction-output-reaches-record-heights-with-1-7-increase","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/march-construction-output-reaches-record-heights-with-1-7-increase\/110774\/","title":{"rendered":"March construction output reaches record heights with 1.7% increase"},"content":{"rendered":"<h2>March construction output increased by 1.7% according to the <a href=\"https:\/\/www.ons.gov.uk\/businessindustryandtrade\/constructionindustry\/bulletins\/constructionoutputingreatbritain\/latest\" target=\"_blank\" rel=\"noopener noreferrer\">latest ONS figures<\/a> &#8211; it is the fifth consecutive monthly growth and a record high<\/h2>\n<p>The March <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/february-construction-output-decrease\/109079\/\" target=\"_blank\" rel=\"noopener noreferrer\">construction output<\/a> increase was driven by an uptake in repair &amp; maintenance (3.0%) and new work (1.0%) &#8211; private housing repair and maintenance (5.8%) and private commercial new work (4.0%) were the main contributors.<\/p>\n<h3><span lang=\"EN\">Demand for construction from pre-pandemic period<\/span><\/h3>\n<p>Along with the monthly increase, construction output rose 3.8% in Quarter 1 (Jan to Mar) 2022 &#8211; outside of the coronavirus pandemic period, this is the strongest quarterly growth since Quarter 1 2017 (3.9%).<\/p>\n<p>The level of March construction output was:<\/p>\n<ul>\n<li>3.7% (\u00a3539 million) above the February 2020 pre-coronavirus (COVID-19) pandemic level;<\/li>\n<li>new work was 1.6% (\u00a3148 million) below the February 2020 level<\/li>\n<li>repair and maintenance work was 13.8% (\u00a3687 million) above the February 2020 level.<\/li>\n<\/ul>\n<h3>Annual rate of construction output price growth was strongest<\/h3>\n<p><a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/pmi-reports-slowest-new-construction-orders-growth-2022\/110450\/\" target=\"_blank\" rel=\"noopener noreferrer\">Total construction new orders decreased<\/a> by 2.6% (\u00a3346 million) in Quarter 1 2022 compared with Quarter 4 2021 but despite this fall, all sectors are still above their pre-coronavirus pandemic level (Quarter 4 2019).<\/p>\n<p>The annual rate of construction output price growth was 7.3% in the 12 months to March 2022 &#8211; the strongest annual rate since records began.<\/p>\n<p class=\"x_Normal1\"><strong><span lang=\"EN\">Commenting on the March construction output, <\/span><span lang=\"EN\">Clive Docwra, managing director of property and construction consultancy\u00a0<\/span><span lang=\"EN\"><a href=\"https:\/\/mcbains.co.uk\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-auth=\"NotApplicable\" data-linkindex=\"1\">McBains<\/a>, said:<\/span><\/strong><\/p>\n<p class=\"x_Normal1\"><span lang=\"EN\">&#8220;<\/span><span lang=\"EN\">Today\u2019s figures show that the industry rallied in March, in part due to new orders coming in from pent-up demand left over from the pre-pandemic period.<\/span><\/p>\n<h3><span lang=\"EN\">&#8216;Inflationary pressures are beginning to bite hard&#8230;wider longer-term picture is a concern&#8217;<\/span><\/h3>\n<p class=\"x_Normal1\"><span lang=\"EN\">&#8220;However, <a href=\"https:\/\/www.pbctoday.co.uk\/news\/plant-equipment-supplies-news\/mace-report-ukraine-russia-war-tender-price-inflation-2022\/107786\/\" target=\"_blank\" rel=\"noopener noreferrer\">inflationary pressures<\/a> are beginning to bite hard, with interest rate rises, the <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/ukraine-conflict-building-material-shortages\/106944\/\" target=\"_blank\" rel=\"noopener noreferrer\">war in Ukraine and the rising cost of materials<\/a> contributing to uncertainty about the future.\u00a0<\/span><\/p>\n<p class=\"x_Normal1\"><span lang=\"EN\">\u201cMarch\u2019s increase in output was helped by the return to work of offices, as demand for refurbishments increased. <\/span><span lang=\"EN\">The increase was also propped up by repair work due to the previous month\u2019s storms.<\/span><\/p>\n<h3>&#8216;Cost of living crisis puts private housing sector at risk&#8217;<\/h3>\n<p class=\"x_Normal1\"><span lang=\"EN\">&#8220;<\/span><span lang=\"EN\">Other work areas are less robust, however. The<a href=\"https:\/\/www.pbctoday.co.uk\/news\/energy-news\/energy-price-cap\/105156\/\" target=\"_blank\" rel=\"noopener noreferrer\"> cost of living<\/a> crisis means the private housing sector is particularly at risk, as steep falls in disposable incomes will translate into less demand for new homes.<\/span><\/p>\n<p class=\"x_Normal1\"><span lang=\"EN\">&#8220;The <\/span><span lang=\"EN\">wider longer-term picture is a concern, as total new orders fell by 2.6% in the first quarter of 2022 compared to the last quarter of 2021.&#8221;<\/span><\/p>\n<h3>&#8216;Record-breaking monthly output volume growth is a cause for optimism&#8217;<\/h3>\n<p><strong><a href=\"https:\/\/www.beardconstruction.co.uk\/\" target=\"_blank\" rel=\"noopener noreferrer\">Beard Construction<\/a> finance director Fraser Johns says:<\/strong><\/p>\n<p>&#8220;This record-breaking monthly output volume growth and a return to pre-pandemic output levels is a cause for optimism and a measure of the sector\u2019s resilience.<\/p>\n<p>&#8220;However, there are some underlying factors which should also sound a note of caution. The monthly growth figures are potentially skewed by repair and maintenance work done after the two winter storms.<\/p>\n<p>&#8220;Meanwhile, all-important new work in March sits at 1.6% below February 2020 levels. And total construction new orders decreased by 2.6% in quarter 1 compared to quarter 4 last year.<\/p>\n<h3>Continuing rise in price of raw materials is a concern<\/h3>\n<p>&#8220;Perhaps most concerning is the continuing rise in the <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/russia-ukraine-war-uk-steel-prices\/107530\/\" target=\"_blank\" rel=\"noopener noreferrer\">price of raw materials such as steel<\/a>, concrete, timber and glass. This has pushed price growth in the construction industry to its highest level since records began and remains a challenge to competitive tendering.<\/p>\n<p>&#8220;We continue to support our supply chain via early engagement and prompt payment practices. We also remain focussed on the well-being of our people, as the squeeze of inflation and the recent NI rise starts to bite.&#8221;<\/p>\n<div class=\"mk-custom-module-container\">\n<\/div>","protected":false},"excerpt":{"rendered":"<p>March construction output increased by 1.7% according to the latest ONS figures &#8211; it is the fifth consecutive monthly growth and a record high.<\/p>\n","protected":false},"author":17,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[676,583,172727,572,431,701],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-110774","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-planning-construction-news","7":"tag-construction","8":"tag-construction-products","9":"tag-featured","10":"tag-housebuilding","11":"tag-plant-equipment-supplies","12":"tag-supply-chain"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>March construction output reaches record heights with 1.7% increase<\/title>\n<meta name=\"description\" content=\"March construction output increased by 1.7% according to the latest ONS figures - it is the fifth consecutive monthly growth and a record high\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/march-construction-output-reaches-record-heights-with-1-7-increase\/110774\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"March construction output reaches record heights with 1.7% increase\" \/>\n<meta property=\"og:description\" content=\"March construction output increased by 1.7% according to the latest ONS figures - it is the fifth consecutive monthly growth and a record high\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/march-construction-output-reaches-record-heights-with-1-7-increase\/110774\/\" \/>\n<meta property=\"og:site_name\" content=\"Planning, Building &amp; 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