Construction Output Continues Downward Trend in May

Monthly construction output fell for a second time in May 2026, impacted solely by a decrease in repair and maintenance work, which fell by 2.1%.

According to the Office for National Statistics, May construction output is estimated to have fallen by 0.8%. This follows a revised decrease of 0.1% in April 2026, and an increase of 1.4% in March 2026.

New work grew by 0.2% in May, while the main contributor to the monthly decrease was private housing repair and maintenance which fell by 5.0%.

Meanwhile, the broader trend remained positive.

In the three months to May 2026, total construction output is estimated to have grown by 1.6%, the third consecutive increase in the quarterly series.

Over the three-month period, both new work and repair and maintenance grew by 1.1% and 2.1%, respectively.

At the sector level, seven out of the nine sectors grew in the three months to May, boosted by non-housing repair and maintenance, which grew by 3.0%.

COMMENT

Fragile Confidence

Dr David Crosthwaite, BCIS Chief Economist

BCIS chief economist Dr David Crosthwaite, said: “A 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. 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.

No Room for Complacency

Brian Berry, FMB Chief Executive

Brian Berry, Chief Executive of the Federation of Master Builders (FMB), commented: “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,” Berry continued. “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.”

>> Read more construction data in the news