According to the latest ONS stats, construction output increased by 1.6% over the three months to May
Despite a fall in activity, the increase in construction output marks the third consecutive rise in a rolling three-month period.
Growth was driven by gains in both major areas of the industry, with new work increasing by 1.1% and repair and maintenance rising by 2.1% over the period.
Clive Docwra, managing director at McBains, commented: “After a minimal increase in output in April, the news that the overall growth in the three months to May 2026 is the third consecutive increase in the three-monthly series will provide the industry with some degree of confidence at a time of continued economic uncertainty.”
Seven of nine construction sectors recorded a growth in output
Seven of the nine construction sectors recorded growth during the three months to May. The strongest contribution came from non-housing repair and maintenance, which increased by 3%.
However, the latest monthly figures point to a slowdown in activity. Construction output is estimated to have fallen by 0.8% in May, following a revised 0.1% decline in April. The April figure was previously reported as a 0.1% increase. March saw output rise by 1.4%.
The monthly decline in May was entirely driven by weaker repair and maintenance activity, which fell by 2.1%. New work continued to edge higher, rising by 0.2%.
Within repair and maintenance, private housing work was the biggest drag on performance, with output in the sector falling by 5.0% during the month.
“These figures reinforce what many developers are already experiencing on the ground. Confidence remains difficult to establish, and the inconsistencies and complexities of the planning system are changing developer behaviour, with more time and capital being directed towards projects with lower planning risk,” said Neil Leitch, managing director of development finance, Hampshire Trust Bank.
“As a result, schemes that might have progressed a few years ago are now being filtered out much earlier, as developers take a far more disciplined view of what remains viable.”
Construction output could continue to grow with the right support
Despite the monthly decline, the broader three-month trend suggests the construction sector has continued to expand, supported by sustained growth in repair and maintenance activity.
“Though the figures show monthly construction output is estimated to have fallen by 0.8% in May 2026, this is still an encouraging trend,” Docwra explained.
“It is worth noting that the decrease in monthly output in May 2026 was driven solely by a decline in repair and maintenance, which fell by 2.1%, while new work grew by 0.2%.”
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