Construction firms ended 2025 in growth territory despite a slow end to the year that saw output fall sharply in the final months.

Latest data from the Office for National Statistics shows total construction output rose 1.8% in 2025 compared with 2024 — the fifth consecutive year of annual expansion.

But momentum faded sharply in the final three months of the year, according to official figures published this morning.

Total output fell 2.1% in Quarter 4 (October to December) compared with Quarter 3, with both sides of the market under pressure. New work dropped 2.6% while repair and maintenance declined 1.5%.

Across the main sectors, private new housing was the biggest drag, shrinking 3.6%.

On a monthly basis, output slipped 0.5% in December, following a revised 0.8% fall in November and a 1.6% drop in October.

December’s decline came entirely from a 2.5% slump in repair and maintenance, as new work edged up 1.0%.

Forward indicators were also weaker. Total new orders fell 3.8% (£469m) in Quarter 4 compared with Quarter 3, driven mainly by declines in private commercial and private industrial work.

Construction output price growth eased to 2.7% in the 12 months to December 2025.