{"id":118318,"date":"2022-11-11T15:28:51","date_gmt":"2022-11-11T15:28:51","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=118318"},"modified":"2022-11-11T15:28:51","modified_gmt":"2022-11-11T15:28:51","slug":"ons-construction-output-september-2022-show-growth-highest-output","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/ons-construction-output-september-2022-show-growth-highest-output\/118318\/","title":{"rendered":"ONS Construction output September 2022 shows growth despite choppy waters ahead"},"content":{"rendered":"

The ONS Construction output September 2022<\/a> shows a third consecutive month of growth and the highest level of output since records began<\/h2>\n

The Office of National Statistics(ONS) has released its analysis of construction output in September 2022, showing considerable growth in the face of tumultuous economic forecasts.<\/p>\n

Monthly construction output increased 0.4% in volume terms in September 2022, which is the third consecutive monthly growth following small upward revisions, to 0.6% in August 2022 and 0.2% in July.<\/p>\n

September 2022, in fact, shows the highest level of construction output (\u00a315,125m) since records began in January 2010, even with business slowed or suspended during the mourning period for the late Queen.<\/p>\n

Repairing and maintaining existing housing and developing infrastructure account for the majority of the growth<\/h3>\n

The increase in monthly construction output in September 2022 came from increases seen in both new work (0.6%) and repair and maintenance (0.2%) during the month.<\/p>\n

At the sector level, 5 out of the 9 sectors saw a rise in September 2022, with the main contributors to the monthly increase seen in public housing repair and maintenance and infrastructure new work, which increased by 11.3% and 2.8%, respectively.<\/p>\n

The level of construction output in September 2022 was 4.0% (\u00a3575m) above the February 2020 pre-coronavirus (COVID-19) pandemic level. New work was 0.3% (\u00a329m) below its February 2020 level, while repair and maintenance work was 12.0% (\u00a3604m) above the February 2020 level.<\/p>\n

Alongside the monthly increase, construction output saw an increase of 0.6% in Quarter 3 (July to Sept) 2022, although this is the weakest quarterly growth since Quarter 3 2021 (1.1% fall); the increase came solely from growth in new work (2.4%) as repair and maintenance saw a decrease (2.2% fall).<\/p>\n

Total construction new orders increased 6.4% (\u00a3774m) in Quarter 3 2022 compared with Quarter 2 (Apr to Jun) 2022; this quarterly growth came mainly from private commercial new orders, which rose 27.7% (\u00a3832m).<\/p>\n

The annual rate of construction output price growth was 10.1% in the 12 months to September 2022; this has slowed slightly from the record annual price growth in May 2022 (11.5%).<\/p>\n

Industry thoughts on the ONS construction output September 2022 figures<\/h3>\n

Chris Bone, CEO and co-founder at Modulous, said<\/p>\n

\u201cSeptember 2022 saw the highest level of construction output since records began, as construction output increased for the third month in a row. Of more concern to construction businesses, will be the fact that construction price increases still remain above double digits with September coming in at 10.1%.<\/p>\n

“With the headwinds of the rising cost of finance, supply chain delays<\/a> and ongoing labour shortages likely to continue, the construction industry should look to the emerging technologies that prioritise efficiency and sustainability<\/a> to deliver much-needed homes.\u201d<\/p>\n

Impending economic pressure will require innovative action from industry<\/h3>\n

Andrew Shepherd, managing director at Goldman Sachs-backed modular housebuilder TopHat, said:<\/p>\n

“Today’s data paints a picture of an industry that seems to be navigating choppy waters quite well. However, forward-looking data, such as that published by CIPs, tells a different story.<\/p>\n

“Rising borrowing costs, economic uncertainty and cost constraints will likely hit construction optimism and order books in the short-term, but in the face of plunging affordability levels, it’s important we get on with the job of building more homes to address acute supply and demand imbalances<\/a>.<\/p>\n

“Interest rate increases heightens the sensitivity of \u201ctime\u201d when considering capitalised interest, meaning speed of delivery will become more important than ever. The same can be said for yield-hungry investors – namely institutions, housing associations and councils – who are looking to access revenue streams at the earliest possible time to match liabilities. Therefore it’s important that, in face of uncertainty, we look to innovative solutions that will provide cost and time certainties – like modern methods of construction<\/a>, which have the ability to hedge prices and significantly speed up construction programmes.<\/p>\n

“All the while, the industry must continue to create green jobs in the areas where they are most needed to address the sector’s chronic undersupply of skilled labour and ensure construction is on a front footing when the next economic cycle inevitably hits.”<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

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