Performance for final quarter of 2025 was worst in four years

Construction output grew 1.8% last year despite posting the worst quarterly performance in four years for the final three months of 2025.

According to the latest figures from the Office for National Statistics, output in 2025 was up for the fifth successive year.

But the figure was down by 2.1% in the final quarter of last year with new work and repair and maintenance both falling by 2.6% and 1.5% respectively.

Crutched Friars - Drone 1

McAleer & Rushe celebrated topping out a student resi scheme in the City of London at Crutched Friars recently, with work due to finish in 2027. Construction output in 2025 was up for fifth successive year but the final quarter performance was the worst in four years

The ONS said the performance during the period was the worst quarterly performance since 2021 with many having already laid the blame on Budget uncertainty.

Monthly construction output is estimated to have fallen by 0.5% in December 2025, this follows an upwardly revised decrease of 0.8% in November 2025 and a downwardly revised decrease of 1.6% in October 2025.

It added that total construction new orders fell by 3.8% (£469m) in Q4 last year compared with the previous three months. It said the decrease came mainly from private commercial new work and private industrial new work.

The economy is estimated to have grown by 1.3% for the whole of 2025, a slight uptick from 1.1% growth a year earlier. But it grew by just 0.1% in the final month of 2025.

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