Construction output increased by 2.0%

February 11, 2022

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.