Construction Industry Update – March 2024

Construction back in growth as output rises 1.1% in January

Construction enjoyed a surprise return to growth at the start of 2024 with monthly construction output in January rising 1.1% in volume terms.

The uplift follows three consecutive monthly falls, with green shoots of growth fed by increases in both new work (1.1%) and repair and maintenance (1.2%)

At the sector level, six out of the nine sectors saw a rise in January 2024. The main contributors to the monthly increase were private new housing, and non-housing repair and maintenance, which increased 2.6% and 1.9%, respectively.


Spring Budget

Chancellor Jeremy Hunt today bundled up a set of small spending pledges to sugarcoat reductions in future spending commitments and a freeze in income tax threshold to fund tax cuts.

In his last budget statement before a general election, he said: “Because we have turned the corner on inflation we will soon turn the corner on growth”

There were no big surprises after the leaked 2p cut in National Insurance for both employed and self-employed workers, costing £10bn.


Warning to clients to avoid lowball bids

Mace consult is warning clients to avoid cut-price bids from contractors as material price rises continues easing.

The firm’s latest Market View report warns developers to steer clear of contractors dropping prices heavily to win work as company failures continue to hit supply chains.

Andy Beard, Global Head of Cost and Commercial Management, Mace, said: Over the past quarter, material prices have continued to drop and there are now signs that labour costs are starting to fall. While this is good news, developers need to be careful of those who are aggressively cutting big prices.



Construction back in growth as output rises 1.1% in January | Construction Enquirer News

Budget: £242m to Canary Wharf and Barking for 8,000 homes | Construction Enquirer News

Mace warns clients to avoid lowball bids | Construction Enquirer News

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