Construction output rises for second consecutive month

Construction output rose again in July, increasing by 0.2%, according to the Office for National Statistics.

The latest GDP figures showed that the increase in monthly output, which followed a 0.3% rise in June, came solely from an increase in new work (0.3%), with repair and maintenance work (R&M) remaining level.

At the sector level, the main contributors to the monthly increase were private housing repair and maintenance and private new housing, which grew by 2.4% and 1.2%, respectively.

In the three months to July, construction output increased 0.6% in the three months to July 2025, compared with the three months to April 2025.

There was a 1% quarterly increase for new work, within which the largest positive contributor came from infrastructure new work, up 2.1%. 

Meanwhile R&M grew by 0.1% in the quarter. Within this, the largest contributor came from private housing R&M, which grew 3.8%.

Clive Docwra, managing director of property and construction consultancy McBains, said that, following a fall in new orders reported in June’s figures, the sector would welcome the latest release. 

“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,” he said. 

“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.”

Meanwhile, Richard Cook, senior economics director at development consultant Pegasus Group, said that the second consecutive month of growth “could be a sign of the dark clouds hanging over the sector finally passing”.

However, he noted that “the multitude of economic challenges plaguing the sector remain and mean any self-celebrations from the Government should be halted in their tracks”.

Across the wider economy, GDP output flatlined in July.