Construction new work output rose by almost 4% over the 12 months to Q3 2022 in the latest construction output data release from the Office for National Statistics. Using the monthly data points, the yearly change at November was slightly lower at 3% than the headline measure. Housing output remained the primary driver of industry growth. A solid contribution came from the private commercial sector in the third quarter, with a 7.4% increase over the year at Q3 and a strong quarter-on-quarter improvement. An area of concern was a drop in volume in the repair and maintenance sector between Q2 and Q3. This is the largest construction sub-sector, so is influential to headline measures of recorded construction output.

Construction sector sentiment maintained its broadly neutral level across the fourth quarter, as most sub-sectors saw continuing good workload levels. This momentum is likely to hold, in spite of the notable operational issues in play. Overall construction output settled into a steady rate of growth over 2022, hitting something of a sweet spot in consistency after the topsy-turvy preceding two years. With economic clouds gathering elsewhere, the construction sector still offers consistency of workload going into this year.

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