Construction output grows but uncertainty continues within industry

Latest News Fri, Nov 14, 2025 6:50 AM

The Office for National Statistics has published estimates of Construction Output for September, which shows total construction output is estimated to have grown by 0.1% in Quarter 3 2025 compared with Quarter 2 2025; new work decreased by 0.2%, while repair and maintenance grew by 0.6%.

At the sector level, four out of the nine sectors grew in Quarter 3 2025; the main positive contributor to the increase was private housing repair and maintenance, which grew by 2.9%; the main negative contributor was private new housing, which fell by 1.9%.

Monthly construction output is estimated to have grown by 0.2% in September 2025; this follows a revised decrease of 0.5% in August 2025 and a revised increase of 0.2% in July 2025.

The increase in monthly output in September 2025 came solely from an increase in new work (0.7%), as repair and maintenance decreased by 0.5% on the month.

Total construction new orders grew by 9.8% (£1,078 million) in Quarter 3 2025 compared with Quarter 2 2025; this quarterly increase came mainly from private commercial new work and private industrial new work.

The annual rate of construction output price growth was 2.7% in the 12 months to September 2025.

Dr David Crosthwaite, chief economist at the Building Cost Information Service (BCIS), said: “With two weeks to go until the Autumn Budget, the latest output data are probably not what the Chancellor wanted to see.

“Construction output grew by just 0.1% in Q3 compared to Q2, with growth driven by an increase in repair and maintenance (R&M) output (0.6%), while new work output declined (-0.2%).

On a sectoral basis, growth in the quarter was driven by increases in public non-housing (4.5%), which includes health and education projects, and private housing R&M (2.9%) output, while most other sectors were subdued.

“Q3 is often the period for significant output growth, as the weather conditions are favourable for construction. This time, however, growth is lacklustre to say the least.

“Perhaps this is a signal that private investors have finally got their cheque books out, although it should be noted that the new orders series is notoriously volatile and doesn’t appear to correlate that well with future output.

“Conversely, private housing new orders fell by 5.1%, reinforcing the subdued outlook for the sector.”

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