Monthly construction output slowed by an estimated 0.2% in January following a dip of the same amount in December, the latest official figures show.
The reduction in monthly output in volume terms was the result of a drop in new work, which was down by 0.7%, while repair and maintenance increased by 0.4%, according to the Office for National Statistics.
Heavy rain, snow and storms put a dampener on works, survey responses suggest.
Three out of nine sectors fell in January, with the most significant decreases in private commercial new work, which was down by 6.1% and private housing new work, which fell by 1.8%.
McBains property and construction consultancy’s managing director Clive Docwra says: “January’s dip in output, following an equivalent fall in December, serves as a warning that confidence among some developers remains fragile.”
The drop in private commercial new work and private housing new work are of particular concern, he says.
“The worry is that any longer term stagnation in the wider economy risks having an impact in terms of investor uncertainty, which may lead to further projects being put on hold.
“The government’s Planning and Infrastructure Bill, published earlier this week, contains welcome measures to speed up the planning system, and the industry will hope this injects more confidence among developers and investors in the months ahead.”
