Construction is outperforming the wider economy

Monthly construction output is estimated to have grown by 0.9% in April 2025; this is the third consecutive period of positive growth, following an increase of 0.5% in March 2025.

The increase in monthly output in April 2025 came from increases in both new work and repair and maintenance, which grew by 1.4% and 0.3%, respectively.

At the sector level, six out of the nine sectors grew in April 2025; the main contributors to the monthly increase were infrastructure new work and private housing repair and maintenance, which rose by 2.0% and 1.5%, respectively.

Total construction output is estimated to have grown by 0.5% in the three months to April 2025; new work increased by 0.9%, and repair and maintenance grew by 0.1%.

Dr David Crosthwaite, chief economist at BCIS, said: “Construction is outperforming the wider economy for the first time in a while.

“New ONS data show monthly construction output was up by 0.9% in April while the wider economy shrank by 0.3%.

“New work output was the main driver with public non-housing output exhibiting the highest growth levels on a sector basis.

“Housing output growth was subdued. While public and private new work were both up on the month, the 8.6% fall in public housing output on the year suggests a significant challenge remains if the government’s new homes target is to be met.

“Overall, it’s too early to take this as a sign of long-term recovery for the sector, but output growth is promising.

“The Spending Review confirmed significant investments for national infrastructure and housing and with the project pipeline rumoured to make an appearance in the coming weeks, things are looking up for future demand.”