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Total construction output in Great Britian is estimated to have grown by 0.2% in July 2025, according to the ONS. This follows a rise of 0.3% in June 2025.

The increase in monthly output in July 2025 came solely from an increase in new work (0.3%), as repair & maintenance was flat on the month (0.0%).

Construction outperformed the wider economy as GDP is estimated to have shown no growth in July 2025, following growth of 0.4% in June 2025. According to ONS, construction output grew in five of the first seven months of the year, with only January and May showing a downturn.

This may come as a surprise to private sector industry analysts, including S&P Global Market Intelligence, which insists that UK construction activity has declined every month this year.

Today’s ONS estimates show that in the three months to July 2025 total construction output grew by 0.6%. Over the three-month period, new work increased by 1.0%, and repair & maintenance grew by 0.1%.

At the sector level, four out of the nine sectors grew in the three months to July 2025; the main contributors to the increase were private housing repair and maintenance, and infrastructure new work, which grew by 3.8% and 2.1%, respectively.

Clive Docwra, managing director of property and construction consultant McBains, commented: “After June’s figures showed a fall in new orders, the sector will welcome that July saw an increase in new work, albeit moderate.

“Particularly welcome is that the three months to July showed an increase in terms of infrastructure new work, but a concern is that house-building remains sluggish, which puts the government’s target of building 1.5 million homes under threat.

“There is still underlying confidence within the industry that the medium-term outlook for growth remains encouraging, but many firms will still have to navigate the headwinds of uncertainty over the next few months. 

“For instance, as recent analysis we carried out found, current market conditions mean more developers are expected to continue to push forward with major commercial projects on a stage-by-stage basis to provide cover for concerns over costs and pricing.”

Richard Cook, senior economics director at planning consultant Pegasus Group, said: “The government is desperate for good news at the moment, and this morning’s construction output data showing an increase for a second month in a row will be a welcome boost. Whilst this could be a sign of the dark clouds hanging over the sector finally passing, the multitude of economic challenges plaguing the sector remain and mean any self-celebrations from the government should be halted in their tracks.

“Construction output is just one piece of the puzzle, and whilst their increase is a positive and very welcome indicator, it’d be wrong to assume the UK construction industry is fighting fit. Past today’s headline figure, low productivity growth across almost the entire economy, a tough graduate jobs market, labour shortages in construction and concerns about looming tax rises in the upcoming budget are all contributing to the sombre economic mood.

“If the government were to make progress on addressing these challenges, it will actually help boost growth in the construction sector which in turn can help UK plc and give more money to the government to invest in growth.

“Only through making progress on addressing these various challenges will the construction sector be able to turn the corner and start taking strides towards its 1.5 million new homes target. For now, this goal is merely a wishful economic fantasy.”

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