Silver linings welcomed despite ONS figures showing fall in construction output

Latest News Fri, Jan 16, 2026 7:24 AM

Total construction output is estimated to have fallen by 1.1% in the three months to November 2025; this is the largest fall since March 2023 (1.4% fall).

Over the three-month period, both new work and repair and maintenance fell by 1.0% and 1.1%, respectively.

At the sector level, four out of the nine sectors fell in the three months to November 2025; the main negative contributor to the decrease was private housing repair and maintenance, which fell by 3.7%.

Monthly construction output is estimated to have fallen by 1.3% in November 2025; this follows a downwardly revised decrease of 1.2% in October 2025 and a 0.3% increase in September 2025.

The decrease in monthly output in November 2025 came from decreases in both new work and repair and maintenance, which fell by 1.9% and 0.4%, respectively.

Anecdotal evidence suggests that delays in work and customer spending were affected by economic uncertainty ahead of the autumn budget announcement.

Dr David Crosthwaite, chief economist at the Building Cost Information Service (BCIS), said: “A 19-month low in construction output speaks to the culmination of Budget uncertainty, client and investor hesitancy and challenges in project viability at the tail end of 2025.

“Significant downturns in public and private housebuilding activity are a major concern.

“It continues to suggest that conditions are not conducive for development to progress and underscores the sustained impact of decision-making delays in the planning system.

“Process reforms to the Building Safety Regulator are bedding in but capacity constraints in the wider planning system will likely require a more immediate solution than longer-term changes to national regulation.

“Promisingly, the wider economy saw higher-than-expected growth in November.

“Interest rates and inflation are also softening which should hopefully prompt more positive sentiment among clients and investors.

“After months of disappointing results, these are the silver linings construction needs.”

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