Construction Output Flatlines in Q1 2025

CONSTRUCTION output showed no growth between the final quarter of 2024 and first quarter of 2025, according to the latest data from the Office for National Statistics.

New work output was up by 0.9%, but a 1.2% decrease in repair and maintenance (R&M) output was enough to produce no overall movement.

On an annual basis, comparing Q1,25 with Q1,24, new work increased by 1.7% while R&M showed zero growth, producing an overall 0.9% rise in output.

Monthly Construction Output

The increase in monthly output in March 2025 came from increases in both new work, and repair and maintenance, which grew by 0.6% and 0.4%, respectively.

The greatest monthly changes were in public new housing, which saw a 7.8% reduction in output compared with February, and public housing R&M, which increased by 5.4% in the same period.

Anecdotal evidence from ONS survey returns noted the positive effects of warmer and milder weather.

Sectors

At the sector level, five out of the nine sectors grew in March 2025. The main contributors were private housing and infrastructure new work, which rose by 2.3% and 2.5%, respectively.

Promising Outlook

A more promising outlook is depicted by total construction new orders, which grew by 26.6% (£2,447 million) in Q1,25 compared with Q4,24. This quarterly increase came mainly from infrastructure new work and private industrial new work.

COMMENT

Dr David Crosthwaite, Chief Economist at BCIS, said: “While the whole economy showed slightly better than expected growth in the first quarter of this year – GDP grew by 0.7% – construction was much more subdued.

“Rather than getting ‘Britain building again’ construction is stagnating and the government must take some positive steps to try and address this.

“Hopefully the upcoming Spending Review and promised pipeline update will provide some solace for the sector.”

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