Construction output increased by 2.0%

  • Monthly construction output increased by 2.0% in volume terms in December 2021; this came solely from an increase in new work (3.5%) as repair and maintenance saw a decline of 0.7% on the month.
  • The level of construction output in December 2021 was 0.3% (£35 million) above the February 2020 pre-coronavirus (COVID-19) pandemic level; new work was 2.0% (£190 million) below the February 2020 level, while repair and maintenance work was 4.5% (£225 million) above the February 2020 level.
  • Despite the monthly increase in December 2021, downward revisions, most notably in September and November 2021, mean output has recovered less than previously estimated in November 2021.
  • Alongside the monthly growth, quarterly construction output increased 1.0% in Quarter 4 (Oct to Dec) 2021 compared with Quarter 3 (Jul to Sept) 2021; both new work (1.1%) and repair and maintenance (0.8%) saw increases.
  • Annual construction output increased by a record 12.7% in 2021 compared with 2020, mainly as a result of the coronavirus pandemic contributing to a very weak 2020, which saw the record largest decline in annual growth (fall of 14.9%).
  • Total construction new orders increased by 9.2% (£1,121 million) in Quarter 4 2021 compared with Quarter 3 2021; total new orders are now at their highest level (£13,326 million) since Quarter 3 2017, which was affected by large value orders for High Speed 2 (HS2).
  • The annual rate of construction output price growth was 6.2% in the 12 months to December 2021; this was the strongest annual rate since records began in 2014.
  • At the type of work level, the annual rate of price growth in the 12 months to December 2021 was at its strongest in new housing (9.9%), which is the strongest growth since records began in 2014.

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