Construction Output Down in May after Three Months of Growth

MONTHLY CONSTRUCTION output is estimated to have fallen by 0.6% in May 2025, according to the latest report from the Office for National Statistics (ONS).

This follows three consecutive periods of growth, including an increase of 0.8% in April 2025.

The decrease in monthly output in May came solely from a decrease in repair and maintenance (-2.1%), as new work increased by 0.6%.

At the sector level, output in five out of the nine sectors fell in May. The main contributors to the monthly decrease were non-housing repair and maintenance, and private housing repair and maintenance, which fell by 2.4% and 1.8%, respectively.

Total construction output is estimated to have grown by 1.2% in the three months to May 2025 as new work increased by 0.9%, and repair and maintenance also grew by 1.5%.

INDUSTRY COMMENT

Terry Woodley, MD of Development Finance at Shawbrook

Terry Woodley, MD of Development Finance at Shawbrook, commented: “Output fell for the first time since February, with usual areas of growth like repair and maintenance underperforming in May. Going against the usual seasonal uptick, drivers of the fall could be linked to global economic uncertainty as well as increasing costs for businesses, seeing labour shortages and fewer projects materialising as a whole.

“Looking ahead, the industry needs to remain resolute and agile to return to growth. Hikes to the national living wage and employers’ NI contributions, alongside global uncertainty, will continue to pose challenges for developers – but the Government’s continued focus on housebuilding should provide cause for optimism throughout the summer months.”

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