ONS Construction output figures - Comment from Fraser Johns at Beard

Fraser Johns, finance director at Beard, said: “There is a lot of optimism around this week, and rightly so with the reopening of our retail sector and a successful vaccine rollout.

“The highest level of growth month-on-month since September at 1.6% certainly provides hope that we are heading in the right direction in terms of a roadmap out of the crisis. And compared to the rate of growth of the economy overall at 0.4%, the construction sector has performed well.

“However, in the three months to February output actually fell by 1% and the month was 4.3% down on the same point last year. We also had the warning from the Construction Leadership Council last week that shortages of building products and materials are set to get worse before they get better.

“So, while the rate of growth we see from today’s figures provides a welcome shot in the arm for the construction industry, it’s more important than ever to ensure good relationships with suppliers, including adherence to the prompt payment code. This will help to create the solid foundations needed for growth this year.”

Published: 13 April 2021