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Published: 20/11/2024
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.
New orders dropped 22% in third quarter
Total construction new orders decreased by 22% in 3Q2024 compared with 2Q2024, with £9.7 billion worth of work.
Public new housing saw a 40.5% decrease and private housing was down by 31.3%.
On an annual basis, new orders were down by 9.4% overall, with the biggest falls again seen in housing.
The only increase in new orders was in infrastructure, up slightly on the previous quarter with a 0.8% increase, and by 35.6% compared with 3Q2023.
| Sector | Change 3Q2024 on | |
| 2Q2024 | 3Q2023 | |
| Housing public | -40.5% | -43.2% |
| Housing private | -31.3% | -34.4% |
| Infrastructure | 0.8% | 35.6% |
| Public – other new work | -28.0% | -7.5% |
| Private industrial | -26.9% | -14.0% |
| Private commercial | -20.8% | -3.0% |
| All new work | -22.0% | -9.4% |
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: ‘The new orders data is a reality check to the relatively positive output data, with a significant decline compared to the previous quarter. Private new housing led the fall with orders declining by almost a third on the previous quarter. As a result, the future pipeline is looking slightly less robust, and the government’s new home building target looks even more challenging.
‘Excepting 2Q2020 when we were in lockdown, it’s the lowest figure for private new housing since 2010.’
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