Construction output see decline following period of extreme weather amidst ongoing labour challenges

In February 2022, the volume of construction output decreased by 0.3%, following a 1.6% increase in January 2022 and the first monthly decrease since October 2021, according to the latest Office of National Statistics (ONS) figures. Despite the monthly decrease, construction output increased by 2.4% in the three months to February 2022; the strongest succession of growth over a three month period since June 2021 (4.0%).

Commenting on construction output data for February 2022, Kelly Boorman, partner and national head of construction at RSM UK, said: ‘The construction industry is still under significant pressure to meet demands, as a result of ongoing challenge around labour shortages and material supply, which, coupled with the storms seen during this period, has resulted in a 0.3% decrease in construction output for February.

‘The storms which took place in February have exacerbated pressures on the construction pipeline by delaying projects, with labour constraints squeezed further as a result of days lost on sites and premises. However, despite the monthly decrease, construction output in February was still 1.1% above the February 2020 pre-coronavirus level.

‘Infrastructure also saw its first decrease in monthly output by 2.5%, as well as a 1.6% decrease in three-monthly output, which is likely due to the supply chain pressures and delays to project start dates. Additionally, repairs and maintenance output saw a fall of 0.5%, which is indicative of the impact of the coronavirus pandemic on hybrid and remote working and increasing prices, with businesses now reconsidering future investment in commercial property.’