Construction output records small rise

Latest News Mon, May 18, 2026 6:45 AM

Construction output increased by 0.4% between 4Q2025 and 1Q2026, according to the latest data from ONS.

Compared with the same quarter in 2025, output in 1Q2026 was down by 1.3%.

New work fared less well than repair and maintenance (R&M), decreasing by 1.9% on the quarter and by 5.8% year-on-year.

In contrast, R&M output increased by 3.4% between 4Q2025 and 1Q2026, and by 5.3% on the year.

Across new work and R&M, the greatest quarterly movements were a 6.9% fall in public new housing output and a 4.3% decrease in new private industrial work.

On the year, all new work sectors experienced a decline in output. The steepest fall was an 11.4% decline in public housing output. Conversely, public housing was the only sector to record an annual decline in output in R&M with a 3.6% fall.

Construction’s 0.4% growth contributed to 0.6% growth in GDP overall in 1Q2026 – output in the services sector increased by 0.8% and by 0.2% in production.

Dr David Crosthwaite, chief economist at BCIS, said: On the face of it, the latest ONS data release for quarterly construction output is broadly positive with 0.4% growth evident in total output in 1Q2026. However, the data reveal some concerning trends. While quarterly repair and maintenance output grew by 3.4%, driven primarily by private housing R&M, new work output declined by 1.9%.

‘New work output is important for the wider economy as it represents investment in fixed capital, which is a key lever for growth. Its decline brings the reality of a stagnant economy even closer.

‘It’s still difficult to say with any certainty whether poor new work output in 1Q2026 is a result of the Middle East conflict, although the decreases recorded across all sectors suggest it’s likely.

‘The government must tread carefully moving forward. Investment appetite for construction remains muted and the current political upheaval risks denting confidence further.”

On a monthly basis, data for March 2026 show construction output increased by 1.5% on February but decreased by 0.3% on the volume in March 2025.

In new work, the most significant monthly increases by sector were in private commercial (3.4%) and private housing (2.8%).

R&M output increased by 0.8% overall compared with the previous month. Public housing R&M output increased by 1.4% while private housing R&M fell by 0.1%.

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