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The upward trend figure held despite a slowdown in September where overall construction activity was largely flat recording a meagre 0.1% increase in output, with new work slightly down for the month.
More volatile orders figures were down 22% in the third quarter suggesting a potential hiatus in work going forward.
In a mixed bag of figures for the industry, the September slowdown was blamed on ‘wait and see’ caution ahead of the October Budget.
Largest positive contributors to growth in September were private housing repair and maintenance and infrastructure new work.
Clive Docwra, managing director of property and construction consultancy McBains, said: “The good news is that construction outperformed other industry sectors over the third quarter of the year, seeing an 0.8% increase in output compared to GDP overall growing by just 0.1%.
“On the downside, the September figures for construction show a slowdown in growth of just 0.1% compared to August. Furthermore, after house building had seen a recent mini-resurgence, figures show private housing new work in September dropped by 0.4%, while private commercial work fell by 0.1%.
“These decreases could have been as a result of uncertainty ahead of the Budget with investors holding off on decisions until the picture becomes clearer.
“An interest rate cut in December is looking unlikely because of concerns that the borrowing spree outlined in the Budget will fan inflation so costs are likely to remain high, putting some major projects out of commission for the time being.
“However, our clients in many work sectors are still feeling bullish for the long term, and will be hoping this respresents merely a blip in the recent recovery.”
Scott Motley, head of programme, project and cost management at AECOM, said there was a strong case for remaining optimistic about the outlook for construction.
“If it wasn’t clear before, yesterday’s Mansion House speech shows that infrastructure investment is the cornerstone of the government’s plans for economic growth.
“The task for the sector will be seizing on these opportunities effectively and helping align private funding with public sector investment so that schemes get on-site quickly.
He added: “Healthcare, transport and education continue to be the three priority areas for work, both new-build and retrofit.
“Despite the prospects of increasing labour costs, bigger order books and a more certain pipeline of new work should help to offset any concerns and put firms on the front foot heading into 2025.”
