4th December 2024

Modest Growth in the Construction Sector: Q3 2024

The UK construction industry has shown modest yet positive signs of growth, as the latest figures from the Office for National Statistics (ONS) highlight an increase in output during September 2024. This growth contributes to a 0.8% rise in the sector’s overall output for the three months leading up to September, compared to the previous quarter. 

Sectors breakdown: (mixed results)

The performance of the construction sector has varied across its different segments. Work has led the way, with a 2.0% increase over the three-month period, driven by infrastructure projects that surged by 2.8%. However, repair and maintenance experienced a setback, falling by 0.6%, with private housing repair and maintenance notably declining by 5.8%. 

In September alone, the sector’s output rose by 0.1%. While repair and maintenance activities improved slightly, with a 0.4% increase, new work dipped by 0.2%. Encouragingly, four out of nine industry sectors reported growth during the month, with private housing repair and maintenance posting the highest monthly rise at 1.3%.

Construction’s role in the border economy:

The construction sector’s steady performance has contributed to the UK’s real GDP growth, which also rose by 0.1% in the three months leading to September 2024. This modest economic growth was largely driven by new construction work and activity within the retail trade sector. 

Industry leaders response:

Brian Berry, Chief Executive of the Federation of Master Builders, welcomed the sector’s 0.8% growth in Q3 as a positive sign of recovery. He noted: 

“The 2% growth in new work in Q2 is indicative of growing market confidence. However, the 0.6% fall in repair and maintenance shows the building industry is not out of the woods yet. New orders on housing are particularly worrying, given their significant fall over the quarter, despite the Government’s efforts to build 1.5 million homes.” 

Berry emphasized the need for a long-term strategy to address the sector’s ongoing challenges, particularly the skills shortage and housing market diversification. He called for greater support for SME builders to help the Government meet its ambitious housing targets. 

What this means for the industry:

While the construction sector’s recent performance is encouraging, the mixed results highlight ongoing challenges. With growing infrastructure projects and cautious consumer spending in repair and maintenance, the road to sustained recovery will require a balanced approach, including strategic investments in skills, housing, and market diversification. 

At Strong Recruitment Group, we understand the importance of skilled talent in driving the construction sector forward. Whether you’re looking for experienced professionals or seeking the right role in this evolving industry, we are here to help. For those interested in recruiting for construction and building services roles, contact us today at construction@strong-group.co.uk or 02087636122 to find out more about our recruitment process and the opportunities available.