Beard Construction comments on ONS construction output data
12 January 2024
Following the release of the latest ONS construction output figures, which shows a decrease in construction output in November and the three months to November, here is a comment from Beard Construction.
Fraser Johns, finance director at Beard, said: “As we have seen throughout the year, November’s snapshot highlights the ongoing theme of clients prioritising improvements to existing building stock, rather than committing to new projects. Tighter access to credit, as well as tougher borrowing conditions are certainly contributing factors, while general uncertainty and a lack of confidence in the current climate is also having an impact. Given the turbulent weather seen too, it certainly makes sense to see construction output dampen in November.
“With the pressures facing the housebuilding sector, with demand drying up in a higher interest environment, it’s not a surprise to see the sector hampering overall output once again. What is more surprising is to see weaker demand for infrastructure new work. On the ground at Beard, infrastructure work, as well as commercial construction, remains strong avenues for new work, with high demand from frameworks continuing to drive our pipeline.
“As seen earlier this month with later data from CIPS PMI, the outlook of the sector and general sentiment does seem to improve as more positive indicators for the year ahead become more apparent. That is of course little solace for those firms finding conditions very difficult now. As ever, we just need to keep our clients close and help in the process of building back their confidence.”
