{"id":538068,"date":"2026-02-12T12:35:21","date_gmt":"2026-02-12T12:35:21","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=538068"},"modified":"2026-02-12T15:08:55","modified_gmt":"2026-02-12T15:08:55","slug":"annual-construction-output-rises-despite-final-quarter-dip","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/sections\/data\/annual-construction-output-rises-despite-final-quarter-dip-12-02-2026\/","title":{"rendered":"Annual construction output rises despite final-quarter dip"},"content":{"rendered":"

Annual construction output increased by 1.8 per cent in 2025 in the fifth consecutive year of annual growth, according to the latest data from the Office for National Statistics (ONS).<\/p>\n

However, total output fell by 2.1 per cent in the final quarter (Q4) of the year compared with Q3, due primarily to private new housing, which fell by 3.6 per cent.<\/p>\n

Monthly construction output fell by 0.5 per cent in December 2025, the ONS added, as a 1 per cent uptick in new work failed to offset a 2.5 per cent fall in repair and maintenance.<\/p>\n

In data released today (12 February), the government statistic body also said that construction output price growth grew by 2.7 per cent in the 12 months to 31 December 2025.<\/p>\n

But the total value of new orders fell by 3.8 per cent (\u00a3469m) in Q4 compared with Q3.<\/p>\n

The ONS said that this quarterly decrease was mainly due to softer demand for private commercial new work and private industrial new work.<\/p>\n

Despite the Q4 output figures, the most recent Purchasing Managers\u2019 Index (PMI) from S&P Global painted a more positive picture of rising industry confidence.<\/p>\n

The January rating of 46.4 was the highest since June 2025<\/a>, and while it showed that activity was still shrinking, the rate of decline was much improved from December\u2019s 40.1.<\/p>\n

Clive Docwra, managing director of property and construction consultancy McBains, said the monthly ONS output data for December \u201cwill be of further concern to the industry\u201d following a disappointing end to 2025.<\/p>\n

He added: \u201cHowever, it is important to note that some delays in work could be as a result of a logjam at the Building Safety Regulator<\/a>, while December\u2019s figures may also reflect a hangover from uncertainty around the chancellor\u2019s Budget in late November, so the industry will be hoping that an increase in orders will be registered in next month\u2019s figures.\u201d<\/p>\n

Neil Leitch, managing director of development finance at Hampshire Trust Bank, said: \u201cThese figures underline what has been evident throughout 2025. It has been a disappointing year for housebuilding, characterised by a widening gap between ambition and delivery.<\/p>\n

\u201cDevelopers want to build, and demand from homebuyers remains clear, but the conditions required to move schemes forward with confidence are still not in place.<\/p>\n

\u201cImproving output will require sustained investment in planning capacity and far greater consistency across the system. Developers need confidence that approvals will translate into starts and that delays can be managed realistically.\u201d<\/p>\n

Brian Berry, chief executive of the Federation of Master Builders, said the falling output in Q4 – in tandem with the drop in new orders – \u201cshows that workloads are shrinking and confidence is ebbing away across the sector\u201d.<\/p>\n

He added that conditions for SME builders had \u201cdeteriorated significantly towards the end of last year\u201d.<\/p>\n

Samuel Fuller, director of financial training provider Financial Markets Online, said: \u201cThe construction industry, a useful bellwether for wider business sentiment, is still running on empty. So much for this being a government of \u2018builders, not blockers\u2019.<\/p>\n

\u201cBuilding sites are the photo op of choice for chancellors keen to crow about economic growth, but Rachel Reeves will get a frosty reception if she dons a hard hat and boots today.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Annual construction output increased by 1.8 per cent in 2025 in the fifth consecutive year of annual growth, according to the latest data from the Office for National Statistics (ONS). However, total output fell by 2.1 per cent in the final quarter (Q4) of the year compared with Q3, due primarily to private new housing, …<\/p>\n","protected":false},"author":158858,"featured_media":482349,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[78193,565],"tags":[],"class_list":["post-538068","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-data","category-government"],"yoast_head":"\nAnnual construction output rises despite final-quarter dip | Construction News<\/title>\n<meta name=\"description\" content=\"Annual construction output increased by 1.8 per cent in 2025 in the fifth consecutive year of annual growth, according to the latest data from the Office\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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