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Construction output yo-yos as growth falters again

Construction output yo-yos as growth falters again

Construction output slipped back into reverse in October as the sector’s stop–start year continued to unsettle clients and investors.

Latest official figures from the ONS show total output fell 0.3% in the three months to October 2025, underlining how fragile growth remains after September’s small lift.

The quarter was dragged down by a 1% fall in repair and maintenance, which wiped out a barely-there 0.1% rise in new work.

Four of the nine measured sectors shrank, with private housing repair and maintenance delivering the biggest hit — down 2.3% and private new housing falling 1%.

October’s monthly figures paint the same yo-yo picture: output dropped 0.6%, reversing September’s brief 0.2% uptick. Both new work and R&M fell, by 0.7% and 0.6% respectively, reinforcing a market still struggling to find footing.

Contractors say investor confidence remains fragile, with developers drip-feeding starts and households holding off upgrades while costs, financing and market sentiment remain jittery.

Jo Streeten, managing director, Buildings & Places at AECOM said: “A dip in output underlines just how fragile the recovery remains.

“The government has talked up capital spending and planning reform, but clients are still waiting for clear signs that the system will move faster before committing to major programmes.

“The commitment to add 350 planners in last month’s Budget is the kind of practical measure that can keep projects flowing.

“However, the bigger prize is pace and predictability – using AI and digital tools to speed up how submissions are reviewed, cut uncertainty and shorten timelines. Turn that into delivery and confidence can carry into 2026 with a more robust pipeline.”

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