Construction Output Sees Marginal Growth in Q3 2025

TOTAL CONSTRUCTION OUTPUT is estimated to have grown by 0.1% in Quarter 3 (July to Sept) 2025 compared with Quarter 2 (Apr to June) 2025.

The latest data from the Office for National Statistics shows new work decreased by 0.2% over the three month period, while repair and maintenance grew by 0.6%.

At the sector level, four out of the nine sectors grew in Q3 2025. The main positive contributor to the increase was private housing repair and maintenance, which grew by 2.9%. Meanwhile, the main negative contributor was private new housing, which fell by 1.9%.

Monthly Output

In September 2025, monthly construction output is estimated to have grown by 0.2%. This follows a downwardly revised decrease of 0.5% in August 2025 and an upwardly revised increase of 0.2% in July 2025.

The increase in monthly output in September 2025 came solely from an increase in new work (0.7%), as repair and maintenance decreased by 0.5% on the month.

Total construction new orders grew by 9.8% (£1,078 million) in Q3 2025 compared with Q2 2025. This quarterly increase came mainly from private commercial new work and private industrial new work.

The annual rate of construction output price growth was 2.7% in the 12 months to September 2025.

INDUSTRY COMMENT

David Crosthwaite, chief economist at BCIS, said: “With two weeks to go until the Autumn Budget, the latest output data are probably not what the Chancellor wanted to see.

“Q3 is often the period for significant output growth, as the weather conditions are favourable for construction. This time, however, growth is lacklustre to say the least.

“While output growth may be flatlining, there’s better news for new orders. Total new orders increased by almost 10% in Q3 compared to Q2. Growth was driven by significant increases in both private industrial (114.1%) and private commercial (51.4%) orders.

“Perhaps this is a signal that private investors have finally got their cheque books out, although it should be noted that the new orders series is notoriously volatile and doesn’t appear to correlate that well with future output.

“Conversely, private housing new orders fell by 5.1%, reinforcing the subdued outlook for the sector.”

Jo Streeten, Managing Director, Buildings & Places at AECOM, said: “A fourth consecutive rise in output shows an industry building momentum despite significant economic headwinds. The government has set out its long-term vision for homes and infrastructure delivery but now we must see action on the ground. Ahead of the Chancellor’s Budget, the industry will be looking closely for stability and direction, not further roadblocks to delivery.

“By accelerating delivery through digital planning tools, AI innovation and stronger public–private collaboration, policy can be turned into performance, ensuring every pound of investment achieves maximum impact.”

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