THE CONSTRUCTION SECTOR PROVES ITS RESILIENCE

Terry Lloyd
NFDC ISP Representative and Head of Construction at Paragon Bank

“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.”