According to the latest data from the Office for National Statistics (ONS), the UK’s construction industry saw a 0.2% output decline in January 2025, marking the second consecutive monthly fall.
The dip, which follows a similar 0.2% drop in December 2024, was driven entirely by a 0.7% decrease in new work. However, repair and maintenance provided some support, rising by 0.4%.
Weather Blamed for Decline
Seasonal downturns in construction activity are common during winter, and the ONS highlighted adverse weather conditions—including heavy rain, snow, and storms—as key factors affecting productivity.
At the sector level, three out of nine sectors recorded declines. The most significant contributors to the overall drop were private commercial new work, which fell by 6.1%, and private housing new work, which saw a 1.8% decrease.
Despite the recent monthly reductions, construction output increased by 0.4% in the three months to January 2025. This growth was driven by a 1.4% rise in new work, though repair and maintenance declined by 0.9%.
The ONS noted that the quarterly rise was primarily due to strong output in November 2024, which saw a 0.6% increase.
While the industry faces near-term challenges, analysts will be watching closely for signs of recovery as the sector moves into the traditionally busier spring months.
