Repair and maintenance work helped drive monthly rise
Output in the three months to January fell by 2%, according to the latest figures from the Office for National Statistics.
It was the fourth consecutive fall in the three monthly series with both new work and repair and maintenance falling by 3.2% and 0.4% respectively. Private new housing, fell by 6.3%.
But monthly construction output grew by 0.2% in 2026 following three consecutive falls in the monthly series.
The increase came solely from a rise in repair and maintenance, which grew by 3.3% as new work fell by 2%.
Jo Streeten, managing director, Buildings & Places at Aecom said: “Seeing output edge upwards month-on-month is a welcome sign. Key infrastructure projects that had been paused are beginning to accelerate and contractors are telling us there is still a solid pipeline of work expected to reach site later this year.
“Despite this, all eyes will be on the wider economic impact of ongoing geopolitical tensions in the months ahead, with inflation likely to rise and any cuts to interest rates held back.”
And Clive Docwra, managing director of property and construction consultancy McBains, added: “The worry, of course, is that along with an already fragile economic climate, the Middle East crisis will impact construction by driving up material costs and disrupting global supply chains, so the outlook for 2026 is already looking bleaker than expected.”
The overall economy failed to grow in January, the ONS said, after registering growth of just 0.1% the month before.
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