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Published: 13/05/2024
The Office for National Statistics (ONS) publishes quarterly data measuring the value and volume of main contractors’ new orders in Great Britain by sector and type of work. Its intention is to provide a forward-looking snapshot of both current confidence and potential future activity in the construction industry.
Does increase in new orders spark optimism for recovery?
Total construction new orders increased by 15.9% in 1Q2024 compared with 4Q2023, with almost £10.5 billion of work, the highest level of new orders since 1Q2023.
Significant increases were seen in the private industrial and commercial sectors, as well as in public – other new work, which includes planned health and education projects.
The beleaguered private housing sector saw a 5.3% increase in new orders, while public housing decreased by 53.6%.
On an annual basis, new orders fell in the housing, infrastructure and private industrial sectors.
| Sector | % change 1Q2024 on | |
| 4Q2023 | 1Q2023 | |
| Housing public | -53.6 | -42.0 |
| Housing private | +5.3 | -7.3 |
| Infrastructure | +1.8 | -16.4 |
| Other new work – public | +43.8 | +6.0 |
| Private industrial | +35.3 | -23.2 |
| Private commercial | +27.9 | +23.4 |
| All new work | +15.9 | -2.9 |
Source: ONS – New Orders for construction: volume seasonally adjusted growth rates, by main contractor, by sector, constant prices, Table 2
Source: ONS – New Orders for construction: volume seasonally adjusted growth rates, by main contractor, by sector, constant prices, Table 2
Dr David Crosthwaite, Chief Economist at BCIS, said: ‘In contrast with the latest output data, which shows continued contraction in construction, new orders seem to have recovered with robust growth evident in the first quarter of the year.
‘Let’s hope these orders translate into a much-needed uptick in construction output going forward. Reducing the cost of borrowing, to boost investment and also improve affordability for consumers, is key to getting new construction growing again. However, the Bank of England maintaining the base rate at 5.25% keeps the cost higher for longer.’
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