Total construction output is estimated to have grown by 0.3% in the three months to August 2025, but there is concern that the latest ONS figures overlook continued challenges facing the industry.
Total construction output is estimated to have grown by 0.3% in the three months to August 2025.
Over the three-month period, new work fell by 0.4%, and repair and maintenance grew by 1.3%.
At the sector level, five out of the nine sectors grew in the three months to August 2025; the main contributor to the increase was private housing repair and maintenance, which grew by 5.6%.
Monthly construction output is estimated to have fallen by 0.3% in August 2025, after showing no growth in July 2025 (revised down from 0.2% growth in our previous publication).
The decrease in monthly output in August 2025 came solely from a decrease in repair and maintenance (1.5%), as new work increased on the month (0.5%).
Dr David Crosthwaite, chief economist at BCIS, said: “Uncertainties over next month’s Budget and global trade have shown up in the latest data for construction output and GDP.
“Construction output declined in August while the wider economy saw minimal growth. Further, what had been reported in July as a 0.2% monthly increase in construction output has subsequently been revised down to no growth. to 0%
“Despite the sluggish conditions, new work activity appears to be ticking over with robust growth recorded in both public non-housing and private industrial output. That said, housing output was a mixed bag with new work growth in public and private housing showing little signs of reaching the volume needed to hit the government’s housebuilding targets.
“November’s Budget will be a defining moment for the government. Already in its second year of the Parliament, time is running out for its promised building boom and economic reform. With demand and output growth stagnant, it’s paramount the Chancellor’s Budget is used as a vehicle to improve investment conditions.”
