Latest estimates from the Office for National Statistics (ONS) show that total construction output in Great Britain showed no growth (0.0%) in Quarter 1 of 2025 compared with the fourth quarter of 2024.
ONS numbers are in contrast to other industry surveys, including the monthly S&P Global UK Construction Purchasing Managers鈥� Index, which has shown UK construction activity decreasing every single months so far this year.
But according to the ONS, while repair & maintenance output fell by 1.2% in the first quarter, new work increased by 0.9% over the period.
Construction output is estimated by the ONS to have grown by 0.5% in March 2025. However, its previous estimate of 0.4% growth in February has now been revised to show just 0.2% growth, following on from a decrease of 0.3% in January 2025.
The increase in monthly output in March 2025 came from increases in both new work (0.6%), and repair & maintenance (0.4%).
Anecdotal evidence from survey returns once again noted the positive effects of warmer and milder weather.
The main contributors to the monthly increase were private housing and infrastructure new work, which rose by 2.3% and 2.5%, respectively.
Much more positive is the news from ONS that total construction new orders grew by 26.6% (拢2,447m) in Q1 2025 compared with Q4 2024; this increase came mainly from infrastructure new work and private industrial new work.
Clive Docwra, managing director of property and construction consultancy McBains, commented: 鈥淲ith March鈥檚 increase in output coming off the back of moderate growth in February, this will give further cheer to the construction industry, especially with the increase in new work in housing and infrastructure.
鈥淗owever it鈥檚 too early to say if the sector has turned a corner in terms of growth being maintained.聽 Caution amongst investors is still apparent in a number of sectors due to the current geopolitical climate and the UK economic outlook.
鈥淔urthermore, although private housing new work grew by 2.3% in March, the industry will be worried that this week鈥檚 announcement on the proposed immigration changes restricting the number of skilled workers will have a significant impact on future work capacity 鈥� and it will also have a huge bearing on whether the government can meet its housing targets too.
鈥淎 cut in interest rates next month would help give an injection of confidence in the industry during a period of uncertainty.鈥�
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