Construction annual output falls as new work declines

Latest News Mon, Jun 15, 2026 5:35 AM

Monthly construction output increased slightly in April 2026, rising by 0.1% on March, according to the latest ONS data.

New work was down by 0.3% on the month, while repair and maintenance (R&M) increased by 0.6%. The biggest monthly changes were in public non-housing, which includes health and education projects and was up by 3.6%, and private new housing, which decreased by 3.3%.

On an annual basis, total construction output fell by 1.0%. New work decreased by 4.8% in the 12 months to April 2026 while R&M rose by 4.4%. In comparison to April 2025, the only new work increases were in public non-housing, up by 4.6%, and private commercial, up by 0.8%.

The largest year-on-year decrease was in public new housing, which saw a 12.6% decline.

In R&M, public housing increased by 2.2% on the year while private housing output rose by 8.3%.

Dr David Crosthwaite, chief economist at BCIS, said: “There are several things happening in this latest construction output data release. First is the notable decline in new work on an annual basis. This points to sustained weak demand and the reduced appetite for new construction, likely as clients and developers wait to see whether macroeconomic conditions improve.

“Declines in new work occurred across sectors, although were most acute in new housing and industrial work. This aligns with broader industry sentiment, where viability considerations continue to weigh heavily on investment and development decisions in these sectors.

“Ongoing discussions around steel tariff quotas, including reports that ministers are reviewing proposed policy changes, underline how sensitive the wider construction industry remains to cost pressures and potential supply chain disruption. At the same time, trading updates from some developers continue to highlight many of the same themes: affordability pressures, weak consumer confidence, balance sheet management and capital discipline.

“Against a backdrop of a 0.1% contraction in GDP in April, the output data suggest that conditions for new construction activity remain challenging to say the least. Recovery is unlikely to hinge on any single issue being resolved; the industry is contending with a range of interconnected pressures, meaning any improvement is likely to be gradual and vary considerably by sector.”

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