A flat 0.0% in overall growth marked the first quarter of the year compared to Q4 2024
In line with no growth, the ONS stats Q1 2025 new work increased by a modest 0.9%, while repair and maintenance fell by 1.2%.
Monthly, construction output grew by 0.5% in March, after a 0.3% decrease in January and a 0.2% increase in February.
Slight growth in some aspects
The stats aren’t just full of bad news, as the increase in monthly output is due to a 0.6% increase in new work and an increase of 0.4% in repair and maintenance.
Out of the nine construction sectors, five grew with private housing new work (+2.3%) and infrastructure new work (+2.5%) showing the most growth.
New orders saw the largest growth, with a 26.6% jump, or £2.447bn, from Q4 2024. This growth largely impacted infrastructure projects and private industrial projects. This may be a sign of a boost to capital investment, especially in infrastructure including transportation, utilities, and logistics.
Inflation and skills/labour shortages are still huge issues for respondents, who also provided anecdotal evidence that nicer weather has caused an increase in activity.
Response rate for this survey sits at a strong 72.7%, marking a continual improvement in response rates.
Overall, the sector remains positive and hopeful for future growth, however that growth has largely yet to manifest in any meaningful way.
“This will give further cheer to the construction industry”
Clive Docwra, managing director of property and construction consultancy McBains, said: “With March’s 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.
“However, it’s too early to say if the sector has turned a corner in terms of growth being maintained. Caution amongst investors is still apparent in a number of sectors due to the current geopolitical climate and the UK economic outlook – and bear in mind that this return covers the period before President Trump’s tariffs were announced, which shook investors’ confidence.
“Furthermore, although private housing new work grew by 2.3% in March, the industry will be worried that this week’s announcement on the proposed immigration changes restricting the number of skilled workers will have a significant impact on future work capacity – and it will also have a huge bearing on whether the government can meet its housing targets too.
“A cut in interest rates next month would help give an injection of confidence in the industry during a period of uncertainty.”
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