Construction Output Shows Slow Growth During Summer 2025

TOTAL CONSTRUCTION output is estimated to have grown by 0.3% in the three months of summer to August 2025.

The latest data from the Office for National Statistics shows over the three-month period, new work fell by 0.4%, and repair and maintenance grew by 1.3%.

Summer 2025 Growth

At the sector level, five out of the nine sectors grew in the three months to August 2025; the main contributor to the increase was private housing repair and maintenance, which grew by 5.6%.

Monthly construction output is estimated to have fallen by 0.3% in August 2025, after showing no growth in July 2025 (revised down from 0.2% growth) and only compensated by June’s overall growth of 0.3%.

The decrease in monthly output in August 2025 came from a decrease in all repair and maintenance (-1.5%), private commercial new work (-2.3%) as new work increased on the month (0.5%) with the main contributors to the overall positive figure being public new housing (3.4%) and public other new work (2.9%).

INDUSTRY COMMENT

Fragile Footing

Jo Streeten, MD at AECOM, said, “A month of declining output in our peak season is a reminder of the fragile footing the sector remains on as it heads into the typically more testing colder months. Despite this, the underlying demand for construction is still there and the challenge now is retaining momentum in the face of ongoing cost pressures.

“To make sure this slowdown doesn’t take hold, the long-anticipated boom in housebuilding needs to start taking shape soon, while the commercial sector must keep up its strong run, especially with Grade-A office space still in short supply.

“The government’s investment plans for infrastructure and housing are clear. Now it’s about how quickly the sector can capitalise on them, which will rely on cost pressures easing. All eyes are already on the Budget for measures to help.”

Time is Running Out

Dr David Crosthwaite, Chief Economist at BCIS, said: “Uncertainties over next month’s Budget and global trade have shown up in the latest data for construction output and GDP.

“Despite the sluggish conditions, new work activity appears to be ticking over with robust growth recorded in both public non-housing and private industrial output. That said, housing output was a mixed bag with new work growth in public and private housing showing little signs of reaching the volume needed to hit the government’s housebuilding targets.

“November’s Budget will be a defining moment for the government. Already in its second year of the Parliament, time is running out for its promised building boom and economic reform. With demand and output growth stagnant, it’s paramount the Chancellor’s Budget is used as a vehicle to improve investment conditions.”

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