Monthly construction output increased by an estimated 0.4% in volume in August after declining 0.4% in July, according to the latest data from the Office for National Statistics (ONS).

The increase in monthly output was due to a 1.6% increase in new work (1.6%), while repair and maintenance work fell 1%.

Five out of the nine sectors grew in August 2024 and the main contributors to the monthly increase were private housing new work and private commercial new work, which grew by 3.4% and 2.2% respectively.

Construction output is estimated to have grown by 1% in the three months to August 2024 due to an increase in new work (1.7%). Repair and maintenance work showed no growth.

Clive Docwra, managing director of property and construction consultancy McBains, said: “After July’s surprise fall in output, the construction industry will breathe a sigh of relief that August’s figures show improvement. Growth had stalled in five of nine work sectors in July, so the 3.4% increase in private housing new work and 2.2% increase in private commercial new work are encouraging signs that the economic climate, at least in the short term, is gradually improving.

“Despite current conditions remaining fragile, our clients are telling us that confidence is returning in many work sectors, helped by factors such as proposed planning reform and the cost of borrowing expected to fall. All eyes will now be on the budget later this month where the industry hopes the chancellor will pull a rabbit or two out of the hat to help encourage further growth.”

Terry Woodley, MD of development finance at Shawbrook, added: “Construction sector activity picked up in August, defying the usual summer slowdown. The latest output figures have revealed a strong rise overall, though sectors such as repair and maintenance struggled.

“Looking ahead, developers are preparing for a busier autumn, particularly with the government already introducing supportive reforms. There’s anticipation that the autumn budget will offer more clarity on recent planning process changes and the proposed ‘brownfield passports.’ These initiatives are expected to further stimulate market activity as housebuilding accelerates to meet set targets.”