New data from the Office for National Statistics (ONS) shows that the construction sector experienced modest growth in construction output in the three months to August 2025, but weakening momentum in new contracts
According to the latest statistics, total construction output is estimated to have grown by 0.3% in the three months to August 2025. On a monthly basis, output fell by 0.3% in August.
The monthly decline stemmed entirely from a dip in repair & maintenance (–1.5%), despite a 0.5% increase in new work in August itself.
Over the same period, new work declined by 0.4%, while repair & maintenance (R&M) grew by 1.3%. Private housing repair & maintenance was the standout performer, growing by 5.6% over the past quarter, and making the largest positive contribution to the three-month growth.
ONS notes that these estimates include revisions to earlier months and that adjustments in seasonal factors were applied. Response rates for August improved to 79.9%, compared to 73.0% in July and 77.8% in June, which should lend more confidence to the August figures.
Industry comment
Commenting on the new construction figures, Clive Docwra, managing director of property and construction consultancy McBains, said:
“Today’s figures reflect the subdued economic picture in the industry at present, with output falling by 0.3% following no growth in July, and underperforming against the overall economy which grew by 0.1% in August.
“The fact that new work fell by 0.4% over the three months to August reflects the cautiousness by investors to commit to spending on projects while economic uncertainties persist. A glimmer of hope is that new work orders increased in August by 0.5%.
“However, many developers will be putting any plans on hold until after the Chancellor delivers her Budget next month, while the industry will be looking for the speech to give further incentives to get Britain building.
“Abolishing stamp duty and reforming council tax – the latter, which is still based on values from the early 1990s – would lower the barrier for moving and provide an injection of confidence in the housebuilding market, which remains sluggish.”
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