Construction output rose by 0.1% in July, according to the latest figures from the Office for National Statistics (ONS).

But industry experts are warning to look beyond the seemingly positive figure.

The 0.1% rise follows a decrease of 0.1% in June 2026 and a decrease of 0.8% in May 2026.

The increase in monthly output in July 2026 came solely from an increase in repair and maintenance, which grew by 0.8%, while new work fell by 0.4%.

The main contribution to the monthly increase in repair and maintenance was private housing repair and maintenance, which grew by 1.7%, while the largest contribution to the decrease in total new work was a fall of 4.9% in private housing new work.

Clive Docwra, managing director of property and construction consultancy McBains, said: “While the headline figure may show an increase in output in July, the fact that this came solely from repair and maintenance work reflects the challenging conditions impacting the industry.

“Particularly concerning is private housing new work falling by close to 5% in July, at a time when the government is talking up the housebuilding sector.

“It’s clear that many construction firms are still feeling the impact of cost and inflationary pressures because of the Middle East crisis, and so the overall picture is one of treading water.”

Over a three-month period to July, total construction output is estimated to have fallen by 0.5%.

The drop follows four consecutive increases in the three-monthly series, with strong growth seen in the three months to April and May, of 1.3% and 1.5%, respectively.

Over the latest three-month period new work fell by 0.4% and maintenance by 0.7%.

At the sector level, six out of the nine sectors fell in the three months to July 2026; the main negative contribution to the decrease was private housing repair and maintenance, which fell by 1.7%.

Hampshire Trust Bank managing director of development finance Neil Leitch said: “These figures are another reminder that housing ambition and housing delivery are two very different things. If we want a genuine reset in housebuilding, we must address the conditions that determine whether developers are prepared to commit capital and start building in the first place.

“Development has become progressively more complicated and more expensive. Developers can spend substantial sums getting a scheme through planning before factoring in Section 106, CIL, biodiversity net gain and the additional costs and requirements around building safety. Meanwhile, local planning authorities are being asked to administer an increasingly complex system while many remain significantly under-resourced.”