Latest estimates from the Office for National Statistics (ONS) show very modest growth for the construction industry, with a strong suggestion of uncertainty about what is actually happening.
The ONS estimates that total construction output in Great Britain grew by 0.2% in September but has now revised both its previous August estimate and, for a second time, its July estimate.
A month ago August output was reckoned to have decreased by 0.3%, compared to July; this has now been revised downwards to a 0.5% fall. July鈥檚 output had originally been estimated as being up 0.2%, was later downgraded to zero and has now been revised again, back to 0.2% growth.
The upshot is that across the third quarter (Q3) of 2025, the ONS currently estimates that total construction output grew by 0.1% compared to Q2. New work decreased by 0.2% during Q3, while repair & maintenance grew by 0.6%.
At sector level, four out of the nine sectors grew in Q3; the main positive contributor to the increase was private housing repair & maintenance, which grew by 2.9%; the main negative contributor was private new housing, which fell by 1.9%.
The increase in monthly output in September 2025 came solely from an increase in new work (0.7%), as repair & maintenance decreased by 0.5% on the month.
Total construction new orders grew by 9.8% (拢1,078m) in Q3 compared with Q2, the ONS says. This quarterly increase came mainly from private commercial new work and private industrial new work.
Construction does at least appear to be outperforming the wider economy. According to the ONS, grow domestic product (GDP) fell by 0.1% in September, following no growth in August 2025 (revised down from 0.1% growth a month ago) and a fall of 0.1% in July 2025.
However, GDP is estimated to have increased by 0.1% in Q3 2025, compared to Q2 (the same as construction), and by 1.3% compared to the same quarter a year ago.
Commenting on the latest construction estimates, Clive Docwra, managing director of property and construction consultancy McBains, said: 鈥淭oday鈥檚 figures will at least provide some degree of comfort ahead of what many expect to be a difficult winter for the construction industry.
鈥淗owever, it鈥檚 still a mixed bag 鈥� while we welcome new work increasing by 0.7% in September and the private commercial sector witnessing growth over the month, performance over the last quarter as a whole remains sluggish, with new orders falling by 0.2% and private housing by a worrying 1.9%. It鈥檚 clear that underlying concerns from investors over the economy are still biting hard.
鈥淭he immediate road ahead remains challenging, and while many are expecting a lacklustre budget later this month, the hope is that the chancellor will make further commitments in terms of infrastructure investment and moves toward a more settled fiscal environment.聽 With housebuilding in need of a boost, reforms such as abolishing stamp duty would also provide a shot in the arm for the sector.鈥�
Got a story? Email news@theconstructionindex.co.uk
