New Work and Repair Drive March Construction Output

Monthly construction output grew by 1.5% in March 2026, driven by increases in both new work and repair and maintenance, which grew by 2.0% and 0.8%, respectively.

These monthly figures from the Office for National Statistics follow upwardly revised increases of 0.5% in February 2026 and 0.7% in January 2026.

Quarterly Output

There was also a small jump in quarterly construction output, which grew by 0.4% in Q1 2026. Over the three month-period, repair and maintenance which grew by 3.4% but was dragged down by new work which fell by 1.9%.

At the sector level, four out of the nine sectors grew in Q1 2026. The main positive contributor to the increase was private housing repair and maintenance, which grew by 4.1%.

Total construction new orders fell by 10.5% (£1,238 million) in Q1 2026 compared with Q4 2025, mainly impacted by private commercial new work and infrastructure new work.

The annual rate of construction output price growth was 0.8% in the 12 months to March 2026.

Dr David Crosthwaite, Chief Economist at BCIS, said: “On the face of it, the latest ONS data release for quarterly construction output is broadly positive with 0.4% growth evident in total output in Q1 2026. However, the data reveal some concerning trends.

“While quarterly repair and maintenance output grew by 3.4%, driven primarily by private housing R&M, new work output declined by 1.9%. New work output is important for the wider economy as it represents investment in fixed capital, which is a key lever for growth. Its decline brings the reality of a stagnant economy even closer.

“Like output data, the latest new orders results are an acute sign of weakening demand conditions across construction. It’s clear from both datasets that this is not an isolated challenge and is impacting pipelines across the board.

“The bills confirmed in the King’s Speech were a step in the right direction, offering construction businesses some hope of the government’s continued commitment to infrastructure investment and payment reforms. However, under current conditions, it’s not certain these measures will be enough to stimulate demand across different sectors.

“The government says it has the right economic plan, but is it the right one for construction? Official data suggest more intervention is needed to protect what is a key growth driver for the economy.”

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