The increase came solely from a 1.2% rise in new work as repair and maintenance figures fell by 0.4%.

Monthly construction output fell by 0.2% in volume terms in December 2024. Data shows that it came solely from a 1.8% fall in repair and maintenance as new work grew by 1.1%.

At the sector level, five out of the nine sectors fell in December 2024 with the main contributors to the monthly decrease being non-housing repair and maintenance, and private housing repair and maintenance, which fell by 1.8% and 1.4%, respectively.

Total construction new orders fell by 2.4%, representing £231m in Q4 last year compared to Q3.

The quarterly decrease came solely from infrastructure new work and private industrial new work, which fell by 23.5%, totalling £496m and 19.7%, totalling £197m, respectively.

Elsewhere, annual construction output went up by 0.4% in 2024 compared with 2023, which marks the fourth consecutive year of annual growth.

The annual rate of construction output price growth was 3.0% in the 12 months to December 2024.

Bloom Building Consultancy director Gareth Belsham says: “Construction lurched rather than limped across the finish line at the end of 2024. After flatlining in October, jumping in November and then shrinking in December, total output across the industry was mixed.”

“But for all the monthly volatility, momentum remains. In 2024 as a whole, the industry grew by 0.4% compared to 2023, chalking up a fourth consecutive year of expansion.”

“However question marks linger about how resilient the growth is. More than half of the nine subsectors tracked by the official data contracted in December.”

“Of far greater concern is the continued slowing of the new orders pipeline. The total value of orders placed in the final quarter slumped by 2.4% compared to the preceding three months. It now stands at the lowest level seen since the shutters came down on much of the UK economy during the first Covid lockdown of 2020.”

“The fact that the Q4 slowdown in orders coincided with the Chancellor’s bearish Budget will make awkward reading in 11 Downing Street, but the decline began long before that. New orders shrank by nearly a quarter in the third quarter, suggesting that the fragility of business sentiment has deeper roots.”

“Yet there are bright spots. Orders for private sector housebuilding surged by 24% in the final quarter of the year, as residential developers who held off for much of 2024 decided to pull the trigger on previously paused schemes.”

“Meanwhile commercial property builders ended the year on a high. The value of commercial orders placed in the final quarter was 15.1% higher than in the same period in 2023, and orders surged by 16% in 2024 as a whole.”

“The industry has begun 2025 finely poised. The Chancellor is making all the right noises about construction being an engine of wider economic growth and the prospect of falling interest rates will make it easier for developers to buy land and get building.”

Meanwhile, McBains managing director Clive Docwra adds: “There will be little surprise among the industry that December witnessed a fall in output, given the ups and downs of the previous eleven months.”

“Despite the disappointing December return, the industry will take heart that new work orders actually grew during the month, but more importantly the fourth quarter of 2024 saw half a percentage rise in output, which is more than perhaps many expected. It means a number of industry sectors will be looking forward with a degree of optimism in terms of the next few months.”

“In particular, the recently published planning reforms and falling interest rates will hopefully inject new momentum into the housebuilding sector, although skills shortages and cost inflation on materials could still have an impact on significant growth across work sectors.”