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UK Construction Output Rebounds in January

Journalist: Newsteam, Newsteam

ended 13. March 2024

The Office Of National Statitstics have reported Construction output in the UK unexpectedly grew by 0.7% year-on-year in January 2024, recovering from a 3.2% contraction in the prior month, easily beating market forecasts of a 0.5% drop. It was the first increase in construction activity since last October, as repair & maintenance activity grew the most in 18 months (13.4% vs 12.2% in December 2023), while new work fell the least in three months (-7.4% vs -12.6%). Monthly, construction output expanded by 1.1% in January, the first increase in four months, rebounding from a 0.5% fall in December. The increase came from both new work (1.1%) and repair and maintenance (1.2%). On the sector side, six out of the nine sectors saw a rise, with the main contributors increasing from private new housing and non-housing repair and maintenance, which climbed by 2.6% and 1.9%, respectively.

  • Are these figures reflective of whats happening on the ground ?
  • Are we to see increases in this activity with more positive data ?
  • Or is this just a January “Spike” and February 2024, figures will show a dampening of productivity ?
  • Will the non-event budget for housing, halt any further growth ?

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Editor
Darryl Dhoffer
Founder at The Mortgage Geezer
The recent chancellors budget, will do little to bolster these january growth figures in the construction industry - and February figures most likely will show brakes applied, yet again. Threadneedle street, need to kick off the stabilisers and reduce rates, sooner rather then later - but will most likely only react when big brother US Federal Reserve, reduce theirs.