Beard Construction comments on latest ONS Construction Output data
10 November 2023
Fraser Johns, finance director at Beard said: "Following the PMI data earlier this week which showed a decline in output in October, news this morning of a 0.4% uplift in volume in September shows just how unpredictable and volatile the sector is in the current climate. Although the month saw a fall in new work, when viewed in the context of the quarter, there was actually a 3.9% rise compared to Q2 2023.
"The biggest contributors to this rise was infrastructure new orders (14.3%) and non-housing public new work (23.7%), particularly for schools and colleges. This certainly reflects our own experiences at Beard as both regional and national frameworks continue to be a great source of work and a driver in pipeline activity. The education sector remains a buoyant market for Beard with starts on site across primary, secondary and further education in recent months. News of an increase in new housing orders will certainly be encouraging for those contractors reliant on the housing market, although the sector still faces real challenges in a sustained higher interest environment.
"September's uplift and the marginal quarter-to-quarter growth was caused predominantly by a rise in repair and maintenance, demonstrating that the appetite or ability to commit to new building projects is still clearly dampened. As a result, the message remains the same; we must remain open and transparent in our conversations with clients and stakeholders, all while doing what we can to minimise pressure on cost plans."
