Total construction output is estimated to have grown by 0.1% in Q3 2025, according to the latest data from the Office for National Statistics (ONS).

New work decreased by 0.2% and repair and maintenance work grew by 0.6%. At the sector level, four out of the nine sectors grew in Q3 2025, with private housing repair and maintenance increasing by 2.9%. The main negative contributor was private new housing, which fell by 1.9%.

Monthly construction output is estimated to have grown by 0.2% in September 2025 following a downwardly revised decrease of 0.5% in August 2025 and an upwardly revised increase of 0.2% in July 2025.

The increase in monthly output in September 2025 came solely from an increase in new work (0.7%). Total construction new orders grew by 9.8% in Q3 2025. The increase came mainly from private commercial new work and private industrial new work.

The annual rate of construction output price growth was 2.7% in the 12 months to September 2025.

Clive Docwra, managing director of McBains, said: “Today’s figures will at least provide some degree of comfort ahead of what many expect to be a difficult winter for the construction industry. However, it’s still a mixed bag – while we welcome new work increasing by 0.7% in September and the private commercial sector witnessing growth over the month, performance over the last quarter as a whole remains sluggish, with new orders falling by 0.2% and private housing by a worrying 1.9%. It’s clear that underlying concerns from investors over the economy are still biting hard.

“The immediate road ahead remains challenging, and while many are expecting a lacklustre Budget later this month, the hope is that the chancellor will make further commitments in terms of infrastructure investment and moves toward a more settled fiscal environment. With housebuilding in need of a boost, reforms such as abolishing stamp duty would also provide a shot in the arm for the sector.”

Terry Woodley, MD of development finance at Shawbrook, added: “A slight rise in September offers a glimmer of positivity heading into the autumn and winter months. Attention will be firmly on the Autumn Budget as developers keep a close eye on any significant changes. Many are feeling the impact of factors such as NIC changes, and will be hoping for measures which enable growth and unlock investment. As doubts grow over the feasibility of meeting the 1.5m housebuilding target, pressure is on Rachel Reeves to remove barriers currently halting progress. Developers remain confident that targets can be hit – but they need proper backing to make this happen.”

David Crosthwaite, chief economist at BCIS, said: “With two weeks to go until the Autumn Budget, the latest output data are probably not what the chancellor wanted to see. Q3 is often the period for significant output growth, as the weather conditions are favourable for construction. This time, however, growth is lacklustre to say the least.

“While output growth may be flatlining, there’s better news for new orders. Total new orders increased by almost 10% in Q3 compared to Q2. Growth was driven by significant increases in both private industrial and private commercial orders. Perhaps this is a signal that private investors have finally got their cheque books out, although it should be noted that the new orders series is notoriously volatile and doesn’t appear to correlate that well with future output. Conversely, private housing new orders fell by 5.1%, reinforcing the subdued outlook for the sector.”