Construction output inched upwards in July by just 0.2 per cent although new orders rose, according to the latest figures from the Office for National Statistics (ONS).
The modest rise followed months of increases, with a rise of 0.3 per cent in June following a 0.5 per cent growth in May and 0.9 per cent in April.
However, the rate of increase slowed, and total construction output was estimated to have grown by 0.6 per cent in the three months to July 2025.
The ONS said over the three-month period to July, new work increased by 1 per cent, and repair and maintenance grew by 0.1 per cent.
It said the main contributors to the increase were private housing repair and maintenance and infrastructure new work, which grew by 3.8 per cent and 2.1 per cent respectively.
It said the increase in monthly construction output in July came solely from a rise in new work (0.3 per cent), as repair and maintenance saw an output increase of just £27m.
Sectors that saw modest growth included public new housing, which rose to £421m from £412m; private new housing, which grew to £3.40bn from £3.36bn; public non-housing new work, which grew to £1.11bn from £1.01bn; and private commercial new work, which rose to £1.95bn from £1.92bn.
Marek Suchocki, infrastructure strategy lead at construction software firm Autodesk, said confidence in future pipelines needed to improve.
“It’s encouraging to see construction output continue to rise, particularly in repair and maintenance, which often indicates market resilience. These gains show the sector’s ability to adapt even in the face of economic uncertainty,” he said.
“However, with new orders falling sharply last quarter there’s a real risk that today’s momentum could be short-lived unless confidence in future pipelines improves. The immediate challenge now is to convert these green shoots into sustained growth, which requires improving productivity and efficiency across projects.”
Clive Docwra, managing director of property and construction consultancy McBains, said the industry will be encouraged by the data.
“After June’s figures showed a fall in new orders, the sector will welcome that July saw an increase in new work, albeit moderate,” he said.
“The industry will be encouraged that the three months to July showed an increase in terms of infrastructure new work, but a concern is that housebuilding remains sluggish, which puts the government’s target of building 1.5 million homes under threat.
“There is still underlying confidence within the industry that the medium-term outlook for growth remains encouraging, but many firms will still have to navigate the headwinds of uncertainty over the next few months.”
Terry Woodley, managing director of development finance at Shawbrook, said firms will be looking to the Autumn Budget to see if the chancellor will continue to build on the commitments made in the Spring Statement earlier this year, which included additional funding to address the skills shortage, as well as landmark planning reforms to cut red tape.
“With the 1.5 million new homes target still outstanding, and continued noise around large infrastructure projects still making headlines, developers will be keen to receive updates and further support,” he said.
The latest market forecast from consultancy Rider Levett Bucknall (RLB), published yesterday (11 September), said that tender prices across the UK have remained largely static.
RLB added that construction output is continuing to suffer from a shortage of new orders.
The Q3 2025 edition of its Construction Market Intelligence report showed little change to regional tender price forecasts for this year and next.
Where changes have occurred, the direction has been downward, the report said.
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Nicola Harley