UK construction output unexpectedly drops

UK construction output contracted by 0.7% year-on-year in October 2024, falling short of market expectations for no change and following a 0.4% decline in the previous month.

UK construction output unexpectedly drops

This marked the second consecutive monthly decrease and the seventh this year, driven by a third straight month of falling new work (-1.2% vs. -2.7% in September). Additionally, repair and maintenance activity dropped for the first time in over four years (-0.2% vs. +2.8%). On a monthly basis, construction output fell by 0.4%, the first decline in three months, after a 0.1% increase in September.

Repair and maintenance activity led the dip The drop was mainly attributed to a decrease in repair and maintenance activity (-1.3% vs. +0.4%), despite a rise in new work (0.2% vs. -0.2%). Four out of nine sectors experienced declines, with private housing repair and maintenance being the largest contributor to the overall decrease.