Construction output rose 0.5% in March, driven by gains in new work and repair activity but overall growth for the first quarter of 2025 remained flat.

The March uptick followed a revised 0.2% rise in February and a 0.3% dip in January, leaving Q1 output level with the previous quarter. New work rose 0.9% over the period, while repair and maintenance slipped 1.2%.

Milder weather helped boost activity, with five of nine sectors reporting growth in March. Infrastructure and private housing led the charge, with new work jumping 2.5% and 2.3% respectively.

Looking ahead new orders surged 26.6% in Q1, up £2.4bn on the previous quarter, mainly thanks to a sharp rise in infrastructure and private industrial projects.

McBains managing director Clive Docwra welcomed the March figures but warned the sector was still playing catch-up and that it’s too early to say if the sector has turned a corner.

He added: “The industry will be worried that this week’s proposed immigration changes restricting skilled workers could seriously hit future work capacity – and the government’s housing targets too.

“A cut in interest rates next month would help give an injection of confidence in the industry during a period of uncertainty.”

Scott Motley, head of programme, project and cost management at AECOM, said: “A continued uptick in output suggests the sector may be entering a more stable period as it moves into what’s typically a busier time of year.

“While the improvement offers encouragement, maintaining momentum will be the sector’s number one priority as it continues to contend with wider economic pressures.

“The upcoming Spending Review is uniquely placed to give the sector long-term clarity over the major investment decisions that must be made in order to deliver the infrastructure we desperately need across the UK.”