Construction Industry Update – August 2022

Construction buyers report first drop in output for 18 months

Industry buyers reported the first drop in construction output for one-and-a-half years in July.

Commercial work saw the only increases as civils and housing falls dragged the bellwether S&P Global/CIPS UK Construction Purchasing Managers’ Index to 48.9 in July from 52.6 in June.

The index was below the crucial 50 no change threshold for the first time since January 2021 and the rate of decline was the fastest since May 2020.

 

Construction output falls 1.4% halting 7-month growth spurt

Monthly construction output dropped 1.4% in June bringing to a shuddering halt a seven-month run of steady growth.

The decrease in the volume of monthly construction output in June came from falls in both new work (2.0%) and repair & maintenance (0.2%).

At the sector level, the main drags were private new housing and private commercial new work, which fell 6.1% and 4.5%, respectively.

 

Road surface warning over driverless car plans

Government plans for self driving cars on UK road will need major investment in road surfaces to make the technology viable.

The warning comes from infrastructure industry association Britpave as plan announced by the Department for Transport could see fully driverless vehicles operating by the middle of the decade.

Unlike human drivers who may slightly shift left of right within lanes, self guided vehicles guided by GPS and other navigational aids will follow and keep to a far more precise path.

 

Contractors wanted for £1.2bn offsite homes framework

Specialist offsite contractors can now apply to join a new £1.2bn framework to deliver homes across the UK.

The new NH3 (Modern Methods of Construction (MMC) of New Homes) framework from public sector companies framework provider LHC will operate cross England, Scotland and Wales

It replaces the current NH2 deal and covers low-rise and medium/high-rise dwellings through to specialist accommodations such as care homes.

 

 

 

Sources:

Construction buyers report first drop in output for 18 months | Construction Enquirer News

Construction output falls 1.4% halting 7-month growth spurt | Construction Enquirer News

Road surface warning over driverless car plans | Construction Enquirer News

Contractors wanted for £1.2bn offsite homes framework | Construction Enquirer News

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