UK construction output fell by an estimated 1% in the three months to August 2026, marking the second consecutive drop, according to the Office for National Statistics (ONS).

In the three months to July, construction fell by 0.5%, while rising 0.1% in the month itself.

Weakness in new housing continued to weigh on the sector in the August figures.

Both new work and repair and maintenance recorded decreases over the period, falling by 1.4% and 0.3%, respectively.

Private new housing was the main contributor to the overall decline, with output in the sector falling by 3.2%. Five of the nine construction sectors recorded decreases during the three months to August.

Monthly construction output also declined, falling by 0.2% in August. This marked the fourth consecutive monthly decrease.

The latest figures also included downward revisions to previous months. Output fell by 0.5% in July, revised from an initial estimate of 0.1% growth, while June’s decline was revised to 0.3%, compared with a previously reported fall of 0.1%.

The August decrease was driven entirely by a contraction in new work, which fell by 0.7%. In contrast, repair and maintenance output increased by 0.4% over the month.

Private new housing again recorded the largest negative contribution to the monthly figures, with output falling by 1.9%.

The continued declines in both the monthly and three-monthly series highlight ongoing weakness in construction activity, particularly in the private new housing sector.

Clive Docwra, managing director of property and construction consultancy McBains, said: “Today’s figures are beginning to represent an all too familiar story for the industry, with output falling both over the three months to August, and during August itself.

“With the overall economy expanding slightly by 0.1% in August, it shows construction is still playing catch-up.

“Once again, private housing is a significant negative outlier, with a 3.2% decrease over the three-month period and a 1.9% decline in August. The cost of borrowing for homebuyers remains high which is having an impact on housebuilding. While the government has recently announced a scheme to help first time buyers, the industry will be hoping for more incentives in the upcoming Budget to stimulate the market among other buyers too.

“Ongoing geopolitical tensions, which continue to push up energy and materials costs in particular, are also causing investors to take pause on some projects.”