Heavy rainfall blamed as UK development output dips 1.9% in February

Unfavourable climate situations dampened the UK development output in February 2024, as heavy rainfall led to a 1.9% decline in output

The lower in month-to-month UK development output got here from decreases in each new work (2.3% fall), and restore and upkeep (1.4% fall).

Eight out of the 9 sectors noticed a fall in February 2024, with the primary contributors to the month-to-month lower seen in non-housing restore and upkeep, and personal industrial new work, which decreased 2.5% and 4.0%.

Non-public housing restore and upkeep was the one sector which noticed a rise, rising 0.2%.

Development trade remark

CEO of APRAO, Daniel Norman, commented: “February’s development as soon as once more softened after exhibiting slight progress within the first month of the 12 months. There was, after all, hope that January’s upward development would proceed, but it surely’s not a shock that the numbers have as soon as once more taken a drop, albeit a slight one.

Whereas February’s poor climate and heavy rainfall will probably be contributors to this decline, it additionally means that development companies and housebuilders proceed to carry their playing cards to their chest because the financial hangover of 2023 is but to totally clear.

“However with the nation’s financial horizons beginning to brighten up, rates of interest having already peaked, and a robust want for extra new properties, we count on to see development choose up sooner moderately than later.”

‘The most recent figures shouldn’t shadow a brighter outlook’

Fraser Johns, finance director at Beard: “After January’s improve in development output bucked the development of the earlier three consecutive month-to-month falls, it could be tempting to assume that February’s figures are a moist squib.

“Nevertheless, it’s evident from the ONS and our expertise that poor climate had so much to do with it, with heavy rainfall resulting in delays in deliberate work and reducing output in February.

“Whereas there are ongoing pressures on the trade, together with some remaining uncertainty round inflation, we shouldn’t let these newest figures shadow a brighter outlook and we shouldn’t let this small decline in output dampen the rising optimism we’re seeing on the bottom.”

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