Construction output grew by 0.4% in February, after a mild 0.3% fall in the previous month
The ONS stats February 2025 shows that new work is up by 0.3%, while repair and maintenance is up by a full 0.5%.
Five of the nine sectors saw growth, adding a positive spin in recent turmoil.
Short term growth but long term flatline in ONS stats February 2025
While construction output has grown on a monthly basis, on a quarterly basis (three months to February) the growth offset previous declines. The growth in new work of 1.2% was offset by repair and maintenance falling by 1.5%.
The main contributors to growth in the five sectors that grew are public other new work, which grew by 4.4%, and public housing repair and maintenance which grew by 4.0%.
Surveys showed that rain and cold temperatures at the start of February suppressed work, while the second half of the month was drier and warmer which facilitated faster work and is anecdotally attributed to the growth seen in the month.
The survey saw an improved response rate up to 79.7% over the 73.1% in January.
A bright spot- but not out of the woods yet
David Morrison, senior market analyst at FCA-regulated fintech and financial services provider, Trade Nation, said: “Monthly GDP is estimated to have grown by 0.5% in February with growths seen across all main sectors. This comes after seeing no growth in GDP in January. Production services saw the largest growth at 1.5%, with construction seeing a 0.4% growth and services 0.3%.
“Finally there’s some good news for UK Chancellor Rachel Reeves. But it’s also the case that one number doesn’t make a trend. The outlook for the UK economy remains downbeat, with the added uncertainty of the effects of Trump’s watered-down tariffs. Amid the ongoing tariff chaos, the market reaction to the better-than-expected data was understandably muted. Sterling briefly spiked higher, while the FTSE 100 futures added to gains as they followed the overnight rally in US stock index futures.”
The ONS stats February 2025 are from a period before economic uncertainty grew due to new tariffs announced by Donald Trump earlier this month.
The UK has received a 10% tariff, causing concern for many industry leaders, including the construction industry.
In response to tariffs, Viki Bell, CEO of the Construction Equipment Association (CEA), said: “The introduction of a 10% tariff on UK goods, with higher levels on automotive, steel, and other metals exported to the US, is deeply concerning, particularly given the existing pressures manufacturers face. With surging operational costs, high energy prices, and ongoing skills shortages already squeezing businesses, these tariffs risk exacerbating an already challenging situation. The situation for our members in Northern Ireland is more complicated, and it will take time to understand the complexities of that area.
“Historically, UK-US trade relations have supported growth, jobs, and innovation across both our economies. Our government has been keen to stress this morning that they are ‘engaging with the Trump administration to press the case for alleviation and are well advanced.’ Now is certainly not the time for measures that undermine this long-standing, mutually beneficial partnership and disrupt crucial supply chains that span multiple markets. We support the sentiment that this is not the time for a trade war.
“It could undoubtedly have been worse—but, as always, the devil is in the detail. In the coming days, we’ll closely examine precisely how these tariffs will impact construction equipment manufacturers and their integrated supply chains.
“We urge the government to act swiftly, provide clarity for businesses, and establish a dedicated Tariffs Taskforce, similar to those successfully implemented during the Brexit process. This would help our industry navigate these tariffs practically and swiftly, minimising disruption at a crucial time.”
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