Monthly construction output increased by 0.4% in February 2025, according to the latest figures from ONS. This follows a decrease of 0.3% in January 2025.
The survey suggested the increase in monthly output was helped by more settled, warmer weather towards the end of the month.
At the sector level, five out of the nine sectors grew in February 2025; the main contributors to the monthly increase were public other new work, and public housing repair and maintenance, which grew by 4.4% and 4.0%, respectively.
However private commercial new work and private housing new work fell by 0.5% and 0.4% respectively.
Commenting on the ONS figures, McBains managing director of property and construction Clive Docwra, said: “After two successive monthly falls in output, the industry will breathe a sigh of relief at today’s figures. However, growth remains sluggish both over the short and medium term and some sectors remain low in terms of new contracts. There will be some concerns that private commercial new work and private housing new work fell.
He added: “The big worry at present is that investors’ confidence has been rocked by Trump’s tariffs and the resulting trade war, which has dented their investment portfolios. Although there’s no panic, it means many are taking a wait-and-see approach, so riding out the storm will inevitability have an impact on a number of projects being given the green light.”
Docwra suggested that contractors sourcing materials from abroad might also face higher prices, as manufacturers looked to pass on costs as a result of being hit by increased tariffs.
He concluded: “The only predictable thing about this is that Trump is unpredictable, and so the outlook could change very suddenly, but a cut in interest rates would provide some comfort at this uncertain time.”
The figures from the ONS paint a slightly different picture of the industry to the one provided recently from the S&P Global Construction PMI index which showed construction output fell for the third month in a row in March as firms complained of “a sustained downturn in business activity, alongside pressure on margins from sharply rising input costs.”
