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The Office for National Statistics (ONS) estimates that monthly construction output fell by 0.3% in August 2025.

And it has revised its previous 0.2% growth estimate for construction output in July 2025 to zero growth.

The decrease in monthly output in August 2025 came solely from a decrease in repair & maintenance (1.5%), as new work increased on the month (0.5%).

Despite a 0.3% fall in August and zero growth in July, June’s 0.3% increase in construction output means that total construction output is estimated by the ONS to have grown by 0.3% in the three months to August 2025.

Over the three-month period, new work fell by 0.4% while repair & maintenance grew by 1.3%.

Across the economy as a whole monthly real gross domestic product (GDP) is estimated to have grown by 0.1% in August 2025, following a revised fall of 0.1% in July 2025 (revised down from no growth in the previous data set). GDP grew by 0.3% in the three months to August 2025, compared with the three months to May 2025, a slight increase on the 0.2% growth in the three months to July 2025.

Commenting on the ONS’ new construction figures, Clive Docwra, managing director of property and construction consultancy McBains, said: “Today’s figures reflect the subdued economic picture in the industry at present, with output falling by 0.3% following no growth in July, and underperforming against the overall economy which grew by 0.1% in August.

“The fact that new work fell by 0.4% over the three months to August reflects the cautiousness by investors to commit to spending on projects while economic uncertainties persist.  A glimmer of hope is that new work orders increased in August by 0.5%.

“However, many developers will be putting any plans on hold until after the chancellor delivers her budget next month, while the industry will be looking for the speech to give further incentives to get Britain building.

“Abolishing stamp duty and reforming council tax – the latter which is still based on values from the early 1990s – would lower the barrier for moving and provide an injection of confidence in the housebuilding market, which remains sluggish.”

Jo Streeten, managing director, buildings & places at Aecom, said: “A month of declining output in our peak season is a reminder of the fragile footing the sector remains on as it heads into the typically more testing colder months. Despite this, the underlying demand for construction is still there and the challenge now is retaining momentum in the face of ongoing cost pressures.

“To make sure this slowdown doesn’t take hold, the long-anticipated boom in housebuilding needs to start taking shape soon, while the commercial sector must keep up its strong run, especially with Grade-A office space still in short supply.

“The government’s investment plans for infrastructure and housing are clear. Now it’s about how quickly the sector can capitalise on them, which will rely on cost pressures easing. All eyes are already on the budget for measures to help.”

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