The increase in monthly output, which follows a fall of 1.1% in April 2024 (revised from a fall of 1.4%), came from increases in both new work (2.7%), and repair and maintenance (0.8%); anecdotal evidence from survey returns noted that warmer weather contributed to increased output in May, with the Met Office confirming that May 2024 was the warmest on record.

At the sector level, eight out of the nine sectors saw growth in May 2024, the main contributors to the monthly increase were a 2.8% increase in total new housing, with both private and public new housing increasing on the month, infrastructure new work, which rose by 3.5%, and non-housing repair and maintenance, which grew by 2.1% on the month.

Construction output is estimated to have fallen by 0.7% in the three months to May 2024; this came from a decrease in new work of 0.9%, and repair and maintenance, which fell by 0.3%.

Clive Docwra, managing director of property and construction consultancy McBains, said: “After previous statistics showed the construction sector lagging behind the modest uptick in growth witnessed in other industries, today’s figures are much better than expected.

“Especially welcome is that growth was experienced across most work sectors, with new housing seeing a 2.8% increase.

“Whether or not this represents the green shoots of recovery, however, is unclear. Over the three months to May output still decreased by 0.7%, showing that growth is still fragile.

“Despite these returns, the sector still needs a shot in the arm, and developers will hope Labour’s announcement this week to get the country building translates into renewed confidence from investors, both in housing and commercial projects.

“Every sector within the industry will also be crossing their fingers for a period of economic stability to help construction across the board get back on track.”

Scott Motley, head of programme, project and cost management at AECOM, added: “An increase in output following three months of decline will give the construction industry a much-needed boost.

“Confidence will also be buoyed following the General Election result and the clarity and stability Labour’s parliamentary majority provides for the nation’s future direction. Ambitious manifesto pledges combined with action in the first few days of the administration suggest infrastructure will be a clear priority.

“However, those ambitions will only be realised with a new level of cooperation between the government and the private sector from the outset. The construction sector will need to play a key role in helping government rise to the technical challenges of rolling out large and complex projects – unlocking infrastructure’s wider economic and social benefits, including decarbonisation, while being mindful of the importance of winning public support for such schemes.”