Output down as winter weather bites

Construction output fell by 0.2 per cent in January as poor weather slowed work, according to the Office for National Statistics (ONS).

It was the second successive month in which output dropped by 0.2 per cent.

January’s decline was due to a fall in new work, with only repair and maintenance rising during the period.

The ONS said anecdotal evidence from surveys attributed the drop to the heavy rain, snow and storms that hit Britain during the month.

Storm Éowyn arrived in late January and particularly affected the central belt of Scotland, with winds of 100mph recorded in Drumalbin, Lanarkshire.

At around the same time, Wales and southern England were hit by Storm Herminia, which Sir Robert McAlpine blamed for dislodging cladding on the Hilton Hotel and Conference Centre in Woking, Surrey.

Industry commentators also pointed to other factors affecting the industry aside from weather.

Aldermore Bank’s head of energy and infrastructure, Lauren Pamma, said: “The construction industry has seen a difficult few months since the start of the new year. 

“Businesses are facing rising costs of supplies, and increased energy, fuel and wage costs, which continue to hamper growth.

“The outlook for the year ahead is currently unclear, particularly with the recent geopolitical landscape and uncertainty around cross-border tariffs.

“These could disrupt supply chains moving forwards, and countries avoiding [recently imposed] US tariffs by reallocating goods to other markets could negatively impact competing British goods in these markets.”

Aecom’s head of programme, project and cost management, Scott Motley, said: “A negative [ONS] reading tallies with other industry barometers and confirms the notable slowdown seen since the start of the year.”

But said the government’s growth strategy should bring hope to the industry.

Motley added: “The much-trailed Planning and Infrastructure Bill is the most significant shift towards a properly supported, long-term infrastructure strategy in a generation.

“The bill should ultimately facilitate greater private sector investment – the need for which is likely to come into even sharper focus as the chancellor potentially eyes up more cuts to local authority funding ahead of the Spring Statement [on 26 March].”

The ONS said that in the three months to January 2025, construction output grew by 0.4 per cent, with new work accounting for the bulk of the growth.