Our Head of Construction Finance, Terry Lloyd, takes a look at how the construction industry has proven its resilience in the wake of the Coronavirus pandemic and is bouncing back stronger than ever.
After the initial onset of the Covid-19 pandemic, output within the construction sector dropped by a record 41% in March, however the figures released by the Office for National Statistics (ONS) today show that the sector is still very much alive.
Lead by infrastructure at a month on month growth of 9.6%, the ONS figures released today for November 2020, show that the industry has made a remarkable rebound, with new work activity increasing overall by 3.5%. The sector is now 0.6% above the level of output prior to the pandemic.
Growth was seen across nearly all new work sectors for the seventh consecutive month, with both public new housing and public other new work falling by just over 2%.
During an uncertain time for the UK economy, where we are generally seeing the negative impact of Covid-19, it is reassuring to see that the construction sector is not only withstanding the effects but also bouncing back stronger. The rate of growth across the sector has increased, going from 1.0% in October to 1.9% in November.
Kwasi Kwarteng, the UK’s new Business Secretary added further reassurance for the sector this week, as an open letter to the construction industry was published highlighting that it is vital that construction continues throughout these unsettling times.
The uncertainty for the industry and the UK economy overall is likely to continue for a prolonged period, however these latest figures and the evident Government support add some welcome reassurance for the start of the new year.