Monthly construction output dropped by 0.6 per cent in May following three months of growth.
The latest figures, published by the Office of National Statistics (ONS), come after a rise of 0.8 per cent in April 2025.
Drops were seen in five out of nine sectors, with the largest falls seen in non-housing repair and maintenance, down 2.4 per cent, and private housing repairs, which dropped 1.8 per cent.
However, despite the setback, total output from the construction industry is estimated to have increased by 1.2 per cent in the three months to May.
New work rose by 0.9 per cent, while repair and maintenance increased by 1.5 per cent.
Terry Woodley, managing director of development finance at Shawbrook bank, said the dip could have been caused by economic uncertainty.
“Going against the usual seasonal uptick, drivers of the fall could be linked to global economic uncertainty as well as increasing costs for businesses, seeing labour shortages and fewer projects materialising as a whole.
“Looking ahead, the industry needs to remain resolute and agile to return to growth.
“Hikes to the national living wage and employers’ National Insurance contributions, alongside global uncertainty, will continue to pose challenges for developers – but the government’s continued focus on housebuilding should provide cause for optimism throughout the summer months”.
In last month’s Spending Review the government allocated £39 billion for the development of social and affordable housing over the next 10 years.
Chancellor Rachel Reeves also allocated an additional £15 billion for transport projects, pledging to implement the Northern Powerhouse Rail plans, which feature a new rail line between Liverpool and Manchester.
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Aastha Trivedi