Total output in the UK construction sector fell 1.1 per cent in the three months to November last year, compared with the previous three-month period.<\/p>\n
According to the Office for National Statistics (ONS), the decrease was the largest quarterly drop since March 2023, when it went down by 1.4 per cent.<\/p>\n
The output figures for both new work and repair and maintenance decreased by 1 per cent and 1.1 per cent respectively. Private commercial new work saw a 4.5 per cent decline, while within repair and maintenance the largest drag came from private housing repair, which fell by 3.7 per cent.<\/p>\n
\u201cAnecdotal evidence suggests that delays in work and customer spending were affected by economic uncertainty ahead of the autumn Budget announcement,\u201d the ONS said.<\/p>\n
On a monthly basis, the ONS estimated total construction output to have fallen by 1.3 per cent in November 2025. The ONS also revised its October figure from a 0.6 per cent fall to a decline of 1.2 per cent. In September 2025, the ONS registered a 0.3 per cent increase in monthly output.<\/p>\n
In November, new work output decreased by 1.9 per cent and fell 0.4 per cent for repair and maintenance. Public new housing weighed heavily on the new work numbers, with a 10.8 per cent fall.<\/p>\n
Richard Cook, senior economics director at Pegasus Group, said the figures were \u201cdisappointing, but not surprising\u201d and that the challenging economic climate combined with a lack of skilled labour and investment had \u201cset construction output on a course of stagnation\u201d.<\/p>\n
\u201cLegislative changes on the horizon such as the National Planning Policy Framework are good opportunities for growth but only if the government nails the delivery \u2013 cutting down planning delays and developing infrastructure are vital for kickstarting growth.<\/p>\n
\u201cThe construction industry generates billions of pounds a year for the economy \u2013\u00a0its success is vital for reaching the government\u2019s ambitious 1.5 million new homes target, which in itself would be a gamechanger for the UK economy,\u201d he added.<\/p>\n
Jo Streeten, managing director of buildings and places at Aecom, said while the figures serve as a signpost that confidence in construction \u201cremains fragile\u201d, there are grounds for optimism going forward.<\/p>\n
\u201cWith inflation easing and interest rate cuts expected to continue, clients and developers should feel more confident about taking projects off the shelf and getting them moving again,\u201d she said.<\/p>\n
\u201cEmbedding AI and digital tools from the earliest stages of infrastructure delivery will be critical\u00a0to ensure projects\u00a0have an immediate impact,\u00a0helping cut delays, reduce\u00a0risk\u00a0and turn renewed confidence into a stronger, more sustainable pipeline for the year ahead.\u201d<\/p>\n
But for Neil Leitch, managing director of development finance at Hampshire Trust Bank, the ONS figures simply underlined what a \u201cdisappointing\u201d year 2025 was for housebuilding, where a gap between ambition and delivery persisted and an under-resourced planning framework lengthened delays to planning decisions.<\/p>\n
\u201cDecisions delayed today will translate into weaker output years down the line, long after the focus has shifted elsewhere,\u201d he said. \u201cFunding is available for well-structured, viable schemes, but projects need flexibility built in from the outset to cope with the realities of delivery. Without that confidence and consistency, the risk is that 2026 looks much like 2025.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Total output in the UK construction sector fell 1.1 per cent in the three months to November last year, compared with the previous three-month period. According to the Office for National Statistics (ONS), the decrease was the largest quarterly drop since March 2023, when it went down by 1.4 per cent. The output figures for …<\/p>\n","protected":false},"author":155754,"featured_media":533722,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[547,552,565],"tags":[],"class_list":["post-536117","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buildings","category-financial","category-government"],"yoast_head":"\n