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Wednesday, December 24, 2025

UK Construction output edges up just 0.1% in the third quarter

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Construction output in Great Britain rose by only 0.1% in the third quarter of 2025, according to new figures from the Office for National Statistics. The industry also grew by 0.2% in September.

The ONS said the picture remains uncertain. It has revised its earlier estimates for both July and August. August output was first thought to have fallen by 0.3%. It has now been revised to a sharper fall of 0.5%. July was first reported as 0.2% growth, then downgraded to zero, and has now been revised again back to 0.2% growth.

Across the quarter, new work fell by 0.2% while repair and maintenance rose by 0.6%. Four of the nine construction sectors grew. The strongest performer was private housing repair and maintenance, up 2.9%. The weakest was private new housing, down 1.9%.

In September, all monthly growth came from new work, which increased by 0.7%. Repair and maintenance fell by 0.5%.

New orders rose sharply in the quarter. They increased by 9.8%, worth an extra £1.08bn. Most of this came from private commercial and private industrial projects.

Construction is still performing slightly better than the wider economy. UK GDP fell by 0.1% in September and showed no growth in August. It also fell by 0.1% in July. GDP for the third quarter as a whole rose by 0.1%, matching construction.

Clive Docwra, managing director at McBains, said the figures offer limited reassurance. He said the market remains “a mixed bag”. He highlighted the fall in private housing and the drop in new orders over the quarter, which he described as worrying signs.

He said the industry faces a difficult winter. He called for the government to use the upcoming budget to support infrastructure investment and help stabilise the economic outlook. He also said that scrapping stamp duty could give a useful boost to housebuilding.

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