Monthly construction output decreased in May 2026, falling by 0.8% on April 2026, according to the latest ONS data.
New work was up by 0.2% on the month, while repair and maintenance (R&M) fell by 2.1%. The biggest monthly changes were in private housing R&M, down by 5.0%, and public housing R&M, up by 3.8%.
On an annual basis, total construction output fell by 1.8% in May 2026. New work declined by 5.8% compared with May 2025, while repair and maintenance (R&M) output increased by 3.8%. No new work sector recorded annual growth, with output declining across every category compared with the same month last year.
The largest year-on-year decrease was in private industrial work, which saw an 11.3% decline. In R&M, public housing increased by 2.1% on the year while private housing output rose by 3.6%.
Brian Berry, Chief Executive of the Federation of Master Builders (FMB), said: “After a difficult start to the year, it is encouraging to see construction output increase for the third consecutive three-month period. The growth in repair and maintenance work is particularly positive, as this is the bread and butter of many small building firms and suggests that demand from homeowners and property owners has remained resilient.
“It is also reassuring to see growth recorded across the majority of construction sectors, demonstrating that activity is beginning to recover more broadly across the industry.
"However, there remains no room for complacency. While repair and maintenance activity increased over the three months to May, the monthly figures show that this momentum weakened towards the end of the period, with repair and maintenance output falling in May. The industry needs sustained confidence and a strong pipeline of projects if this recovery is to continue.
“The Government must use this momentum to accelerate planning reform, improve access to finance for SME builders and provide long-term certainty on housing and infrastructure investment. With the right support, small builders can play a central role in driving growth, delivering new homes and improving existing housing stock across the country."
Dr David Crosthwaite, chief economist at BCIS, pointed to the marked contraction in new work drove the annual fall in construction output in May. Every sector recorded a decline, with the sharpest falls in the private industrial and infrastructure sectors.
“The latest data suggest confidence in commissioning new construction remains very fragile,” he explained. “Clients and funders are continuing to delay investment decisions amid ongoing geopolitical and domestic uncertainty, and there is a growing sense that this caution will persist until conditions stabilise or projects can no longer be postponed.
“In the residential sector, recent trading updates from major house builders highlight macroeconomic uncertainty as an ongoing challenge. There is also concern over political uncertainty and the implications for planning, regulation and funding. In response to a difficult operating environment, some developers have reduced land buying and moderated the pace of new site starts.
“Ultimately, something has to give. With ambitious national delivery targets in place, there is significant pressure on the new government leadership to provide the stability and certainty the industry needs to unlock investment and accelerate delivery. Construction businesses will be looking for clear direction and decisive action in the months ahead.”
