Construction output falls but wider picture remains positive, says ONS data

Construction output in May saw a decrease of 0.6% on April activity, but growth in new work was marginal, rising by 0.6% on the month, while R&M fell by 2.1%.

The Office for National Statistics’ monthly estimates show that the biggest monthly changes were in infrastructure new work, up by 3.0%, and public new housing, down by 2.4%.

On an annual basis, total construction output grew by 1.2% with new work up by 3.6% and R&M down by 1.7%.

Dr David Crosthwaite, chief economist at BCIS, said: “After promising signs of growth in April, which suggested that the sector might have turned a corner, the latest output figures from the ONS are once again disappointing.

“While new work output growth was in broadly positive territory, the largest declines were in repair and maintenance output which has driven growth over the last few years.

“Further, output in both public and private new housing was down on the month which should be a concern for the government given its housebuilding targets.”

In comparison to May 2024, the greatest new work increases were in private industrial, which saw a 17.4% rise, and public non-housing, which includes health and education projects and was up by 16.2%.

In R&M, public housing output rose by 5.1% on the year while private housing saw a decrease of 8.5%.

The ONS publishes monthly estimates of the amount of construction output chargeable to customers for building and civil engineering work in Great Britain, split by sector and type of work.