Construction output fell by 0.5% in August, driven by a downturn in new work, according to the latest estimates from the Office for National Statistics.  

New building work fell 1.5% in the month, which was partially offset by a 1.0% rise in repair and maintenance activity, says the body.  

At the sector level, the main contributors to the monthly fall came from private commercial and private new housing, which were down 4.1% and 1.4%, respectively.  

Over a more representative three-month period, construction lifted 0.9% in the quarter to August, boosted by new work and repair and maintenance activity, which both rose by 0.9%.  

McBains managing director of property and construction consultancy Clive Docwra says: “Recovery in the sector still looks some way off while interest rates remain high and caution is still the watchword for many investors, especially in the critically important housebuilding sector where demand remains dampened.”   

Across the wider economy, gross national product expanded by 0.2% in August, in line with forecasts, lifted by a rise in the services sector, which accounts for around three-quarters of the economy.