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Published: 16/08/2024
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 shows boost across construction sectors
Total construction new orders increased by 16.5% in 2Q2024 compared with 1Q2024, with over £12.5 billion of work, the highest level of new orders since 4Q2022.
Public new housing saw a 94.6% increase, though this was largely due to the figure in 1Q2024 being the lowest since 3Q2020, while the annual increase was a more modest 13.9%.
The private housing sector saw a 11.5% increase in new orders, with over £2.8 billion of work, the highest level since 4Q2022.
On an annual basis, new orders were up across the board, with the most significant increase in the public – other new work, infrastructure and private commercial sectors.
| Sector | % change 2Q2024 on | |
| 1Q2024 | 2Q2023 | |
| Housing public | +94.6 | +13.9 |
| Housing private | +11.5 | +4.3 |
| Infrastructure | +23.5 | +50.0 |
| Public – other new work | +6.9 | +73.8 |
| Private industrial | +21.3 | +16.2 |
| Private commercial | +15.2 | +29.1 |
| All new work | +16.5 | +28.0 |
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: ‘A significant uptick in new orders in the second quarter is good news for construction and should translate into an increase in output over the next few quarters. The most encouraging data is the increase in housing orders, which had suffered significant declines in output since the pandemic.
‘This could herald a change of fortunes for the housing sector, the largest of all the construction sub-sectors and a key engine of growth for construction overall.’
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