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ONS estimates show no growth in total output between June and July

New work increased by 1 per cent in July compared to the previous month, and was up 2.8 per cent on the same month in 2013.

Despite an increase in new work, however, there was minimal growth in total output over the same period, according to new ONS data.

Between June and July, new work in infrastructure grew by 3.3 per cent, a significant improvement following a decline in ouput of 1.9 per cent between May and June. This growth in output in infrastructure was the largest in any sector.

Public housing fell by 0.2 per cent between June and July, compared with growth of 1.7 per cent between May and June.

In contrast, private housing continued to grow, albeit at a slower rate, increasing by 1.1 per cent between June and July having previously grown by 2.0 per cent between May and June.

However, public housing has experienced the largest growth year-on-year, having grown by 30.1 per cent when compared to July 2013.

Despite reaching its highest level since the monthly series began in January 2010, output in public housing is still much smaller than private housing, which reached £1.7bn in July compared with £488m for public housing.

Stefan Friedhoff, Global Corporates managing director for construction at Lloyds Bank Commercial Banking, said: “There is undoubtedly a buoyancy in the industry rarely seen since the recession, but some factors are concerning. Demand is increasing but contractors are having to contend with cost inflation, labour shortages and a relentless pressure on their supply chains.”

“Nevertheless, the moves toward consolidation among construction firms are evidence of an ever-more confident sector, albeit one where firms are looking to meet demands from clients and provide integrated solutions on increasingly complex projects.”

This growth has largely been offset by a decrease in non-housing repair & maintenance, which fell by 4.1 per cent between June and July, the largest of any sector. Overall, output for all repair and maintenance fell by 1.1 per cent over the past month.

Despite this overall decline, non-housing repair & maintenance was estimated to be at its highest level since the monthly series began in January 2010.

Simon Rawlinson, Head of Strategic Research at EC Harris said: “Regional differences in the data are quite striking with high rates of growth evident in the New West, Yorkshire and Humberside, Wales and Scotland, which has seen particularly strong growth in infrastructure and public sector spending.”

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