Mike Hedges, Beard director said:
“After three months of just 0.3% growth, the flattening of construction output in November comes as no surprise and may well herald a further decline in the coming months.
“The sector has long been expecting – and preparing – for this to trend.
“Behind the headline figures, however, construction output seems to tell a tale of two sectors.
“The levelling off is very much driven by significant falls in new housing and private housing repair and maintenance, which may be more directly related to wider pressure on the housing market from recent interest rate hikes.
“Conversely, infrastructure new work and non-housing repair and maintenance continued to grow at significant levels – 4.2% and 2.4%respectively.
“In other words, investment in housing construction seems to be contracting much faster than commercial work and the fact that there is still some growth in the sector provides an element of reassurance.
“In addition, concern around the cost of materials is also less notable with energy costs starting to stabilise during Q4, 2022.
“However, the figures tell us that economic conditions are tightening and the sector has been right to prepare itself for some contraction in the forthcoming period ahead.
“As a sector, we must remain agile in responding to evolving market conditions, while upholding our values in delivering quality for our customers and continuing to pay suppliers promptly.”