Construction hangs on to growth as new orders rebound

Newest official figures from the ONS present output rose by simply 0.2% on the month, pushed by a 0.7% uplift in new work however dragged again by a 0.5% fall in restore and upkeep.

It’s the third sluggish output studying in a row and provides as much as a stagnant 0.1% rise general within the third quarter.

There was brighter information in new orders, which climbed almost 10% over the quarter — helped by a rebound in non-public industrial and industrial initiatives.

Even so, the tempo of development stays subdued as investor confidence stays fragile and housing continues to behave as a drag.

McBains managing director Clive Docwra mentioned the figures supplied some hope because the trade anticipates a grinding few months forward.

He mentioned: “As we speak’s figures will at the least present a point of consolation forward of what many anticipate to be a troublesome winter for the development trade.

“Nevertheless, it’s nonetheless a blended bag – whereas we welcome new work growing by 0.7% in September and the non-public industrial sector witnessing development over the month, efficiency during the last quarter as an entire stays sluggish, with new orders falling by 0.2% and personal housing by a worrying 1.9%. It’s clear that underlying considerations from buyers over the financial system are nonetheless biting exhausting.

“The speedy street forward stays difficult, and whereas many predict a lacklustre Price range later this month, the hope is that the Chancellor will make additional commitments by way of infrastructure funding and strikes towards a extra settled fiscal surroundings.

“With housebuilding in want of a lift, reforms corresponding to abolishing stamp obligation would additionally present a shot within the arm for the sector.”