Flat growth in construction output

Construction output growth was flat (0.0%) in the three-month on three-month all work series in May 2019, according to the latest ONS figure. This was because of a fall in repair and maintenance of 0.5% being offset by a 0.3% increase in new work.

In new work, the increase in the three-month on three-month series in May 2019 was driven by growth in private commercial new work and public new housing, which saw growths of 2.2% and 8.4% respectively.

In repair and maintenance, the decrease in the three-month on three-month series in May 2019 was because of declines in both private and public housing repair and maintenance, which decreased by 2.5% and 3.2% respectively.

Construction output increased by 0.6% in the month-on-month all work series in May 2019, driven by increases in both new work and repair and maintenance which grew by 0.4% and 1.2% respectively.

As a result of the latest report in construction output from the ONS, construction leaders are calling on the new prime minister to stimulate construction and house building.

Sarah McMonagle, director of communications at the Federation of Master Builders, said: “There would be no better way to encourage homeowners to commission building projects in the second half of this year than by slashing VAT on housing repair, maintenance and improvement from 20% to 5%. Furthermore, when we asked our members how the next PM could best prevent an economic downturn, almost 90% felt this was the most effective way to achieve it.”