Construction output yo-yos as growth falters again

Newest official figures from the ONS present complete output fell 0.3% within the three months to October 2025, underlining how fragile development stays after September’s small carry.

The quarter was dragged down by a 1% fall in restore and upkeep, which worn out a barely-there 0.1% rise in new work.

4 of the 9 measured sectors shrank, with non-public housing restore and upkeep delivering the largest hit — down 2.3% and personal new housing falling 1%.

October’s month-to-month figures paint the identical yo-yo image: output dropped 0.6%, reversing September’s transient 0.2% uptick. Each new work and R&M fell, by 0.7% and 0.6% respectively, reinforcing a market nonetheless struggling to seek out footing.

Contractors say investor confidence stays fragile, with builders drip-feeding begins and households holding off upgrades whereas prices, financing and market sentiment stay jittery.

Jo Streeten, managing director, Buildings & Locations at AECOM mentioned: “A dip in output underlines simply how fragile the restoration stays.

“The federal government has talked up capital spending and planning reform, however purchasers are nonetheless ready for clear indicators that the system will transfer quicker earlier than committing to main programmes.

“The dedication so as to add 350 planners in final month’s Finances is the type of sensible measure that may preserve initiatives flowing.

“Nevertheless, the larger prize is tempo and predictability – utilizing AI and digital instruments to hurry up how submissions are reviewed, reduce uncertainty and shorten timelines. Flip that into supply and confidence can carry into 2026 with a extra sturdy pipeline.”