Construction output is estimated to have grown by 0.6% in the three months to July 2025 driven by an increase in new work, according to the latest data from the Office for National Statistics (ONS).
Over the three-month period, new work increased by 1.0% and repair and maintenance work grew by 0.1%.
At the sector level, four out of the nine sectors grew in the three months to July 2025, with private housing repair and maintenance, and infrastructure new work, growing by 3.8% and 2.1% respectively.
Monthly construction output is estimated to have grown by 0.2% in July following a rise of 0.3% in June, with the July increase driven by a 0.3% increase in new work.
Clive Docwra, managing director of McBains, said: “After June’s figures showed a fall in new orders, the sector will welcome that July saw an increase in new work, albeit moderate. 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. For instance, as recent analysis we carried out found, current market conditions mean more developers are expected to continue to push forward with major commercial projects on a stage-by-stage basis to provide cover for concerns over costs and pricing.”
Terry Woodley, MD of development finance at Shawbrook, added: “Construction output is slowly but surely increasing, following a continued rise in activity recorded in June. This stems solely from new work, which took over from repair and maintenance as strong drivers of activity in the sector.
“Looking ahead, attention will undoubtedly turn towards the Autumn Budget, currently slated for November. The hope is that 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.”
