Hello Recruitment Construction Industry Insights: Spring 2023 Review

As part of our commitment to keeping you informed on the twists, turns and developments of the construction industry, we’re back with an update on the construction industry in Great Britain, with the latest stats from The Office for National Statistics for 2023. Let’s delve into the latest figures and trends to provide you with valuable insights into the sector and look at how things are moving forward for the year ahead.

Monthly Output Decline

In May 2023, the construction industry faced a slight setback, with a 0.2% decrease in monthly output in volume terms. This marked the third consecutive month of decline, resulting in a monthly value of £15,360 million. The primary cause of the drop was a 0.4% decrease in new construction work, while repair and maintenance remained stable.

Sector-Specific Insights

Among the nine sectors in the construction industry, four experienced a decline in May 2023. The main contributors to this downturn were non-housing repair and maintenance and private housing new work, which saw decreases of 2.5% and 1.7%, respectively.

Anecdotal evidence suggested that the private housing sector faced a slowdown due to customers’ economic worries. However, there was some positive news in other sectors, with businesses reporting an easing of inflation, offering hope for a broader recovery.

King Charles III’s Coronation

May 2023 brought an additional bank holiday to celebrate the coronation of King Charles III on 8th May. Although adjustments were made for regular calendar effects, the ad hoc nature of the event was not explicitly accounted for in the estimates. This bank holiday affected the number of trading days, potentially influencing the monthly construction output figures.

Three-Month Growth Perspective

On a brighter note, the construction output showed a 0.2% increase in the three months leading up to May 2023. This marks the ninth consecutive period of growth in the three-month-on-three-month series, indicating a more extended positive trend. However, it’s essential to note that this is the weakest growth since the decrease in the three months to August 2022.

The rise in the three-month-on-three-month series was predominantly driven by a 2.5% increase in repair and maintenance work. On the other hand, new construction work experienced a decline of 1.3% during the same period. While total repair and maintenance showed growth, it was weaker compared to the start of the year. Among the contributors to the three-month-on-three-month increase were private housing repair and maintenance (3.9%) and non-housing repair and maintenance (1.6%).

Conclusion

At Hello Recruitment, we remain dedicated to supporting the construction industry through every twist and turn. The May 2023 review shows a sector navigating through challenges and embracing growth opportunities. We are committed to connecting you with skilled professionals who can drive success in your projects, no matter the circumstances.

As we move forward, let’s stay focused on the path ahead, leveraging our expertise to build a stronger construction industry together. Should you require specialised talent or have any questions, don’t hesitate to reach out to us. Our team at Hello Recruitment is here to assist you in all your recruitment needs, providing exceptional talent across the industry.