Monthly construction output is estimated to have fallen by 0.6% in May following three consecutive periods of growth, according to the latest figures from the Office for National Statistics (ONS).

The decline in monthly output was caused solely by a fall in repair and maintenance work, which was down 2.1%. New work increased by 0.6%.

At the sector level, output in five of the nine sectors fell in May. The main contributors to the decline were non-housing repair and maintenance and private housing repair and maintenance, which fell by 2.4% and 1.8% respectively.

Total construction output is estimated to have grown by 1.2% in the three months to May 2025, new work increased by 0.9% and repair and maintenance work increased by 1.5%.

Clive Docwra, managing director of McBains, said: “After last month’s figures showed the construction sector outperformed the overall economy in April, today’s news will disappoint the industry and increase doubts that growth is on an upward trajectory. The industry will note that the fall in growth was down to less repair and maintenance work, as new work orders increased by 0.6%. However, growth is still relatively sluggish and order books are still playing catch up, so the hope is that recent announcements such as the £39bn funding to build more affordable homes will provide a confidence boost when the sector most needs it, given the ongoing uncertain global economic picture.”

Terry Woodley, MD of development finance at Shawbrook, added: “Output fell for the first time since February, with usual areas of growth like repair and maintenance underperforming in May. Going against the usual seasonal uptick, drivers of the fall could be linked to global economic uncertainty as well as increasing costs for businesses, seeing labour shortages and fewer projects materialising as a whole.

“Looking ahead, the industry needs to remain resolute and agile to return to growth. Hikes to the national living wage and employers’ NI contributions, alongside global uncertainty, will continue to pose challenges for developers – but the government’s continued focus on housebuilding should provide cause for optimism throughout the summer months.

Terry Lloyd, head of vendor at Paragon Bank, said: “The latest ONS data showing a modest decline of 0.6% in UK construction output highlights the ongoing pressures facing the sector – from skills shortages to persistent supply chain issues and material costs. This fall relates specifically to repair and maintenance, however, while new work was more positive, up by 0.6%.

“Despite some of these persistent headwinds, appetite for finance to invest in new equipment and modernise operations remains strong among SMEs. It appears many firms are taking a long-term view, using this period to future-proof their businesses.”