Total UK construction output is estimated to have grown by just 0.1% in April, according to the latest data from the Office for National Statistics.
Output rose 1.6% in the three months to April 2026 – the second consecutive increase in the quarterly series – following an increase of 1.5% in March and an increase of 0.5% in February.
Over the three-month period, new work and repair and maintenance work grew by 0.3% and 3.4%, respectively. The increase in monthly output in April 2026 came solely from an increase in repair and maintenance, which grew by 0.6%, while new work fell by 0.3%.
Clive Docwra, managing director of McBains, said: “Growth of 0.1% in April is proof of the industry’s resilience in the face of ongoing economic and geopolitical uncertainty. But the fact that growth came from repair and maintenance work, with new orders falling, is evidence of a difficult few months ahead.
“After March’s figures were better than expected, contraction in April was perhaps inevitable as inflationary pressures kick in and fuel and energy costs clearly start to bite in earnest from the continued closure of the Strait of Hormuz. With the ongoing uncertainty in the Middle East on top of domestic worries, caution remains as regards to the longer-term outlook. And now hostilities are also simmering again after the April truce ended, this will only add to industry concerns.”
Jo Streeten, managing director, buildings and places at AECOM, added: “Another increase in output is welcome news and suggests more projects are moving from the drawing board to the construction site. That said, contractors continue to grapple with geopolitical tensions, inflationary pressures and relying on interest rates holding steady, prompting businesses to keep a close eye on costs.
“While many remain focused on navigating these immediate challenges, there is also an important longer-term question about the industry’s capacity to deliver future demand, with Skills England estimating that more than one million construction workers will be needed to support the government’s ambitious infrastructure plans.”
Dr David Crosthwaite, chief economist at BCIS, said: “There are several things happening in this latest construction output data. First is the notable decline in new work on an annual basis. This points to sustained weak demand and the reduced appetite for new construction, likely as clients and developers wait to see whether macroeconomic conditions improve. Declines in new work occurred across sectors, although were most acute in new housing and industrial work.
“This aligns with broader industry sentiment, where viability considerations continue to weigh heavily on investment and development decisions in these sectors. Ongoing discussions around steel tariff quotas, including reports that ministers are reviewing proposed policy changes, underline how sensitive the wider construction industry remains to cost pressures and potential supply chain disruption.
“At the same time, trading updates from some developers continue to highlight many of the same themes: affordability pressures, weak consumer confidence, balance sheet management and capital discipline. Against a backdrop of a 0.1% contraction in GDP in April, the output data suggest that conditions for new construction activity remain challenging to say the least. Recovery is unlikely to hinge on any single issue being resolved; the industry is contending with a range of interconnected pressures, meaning any improvement is likely to be gradual and vary considerably by sector.”
