Construction output across Great Britain increased by 0.3% during the second quarter of 2026 despite activity declining in each individual month, according to the Office for National Statistics (ONS).
Both components of the industry recorded quarterly growth, with new work rising by 0.4% and repair and maintenance increasing by 0.2% compared with the first quarter.
Five of the nine construction sectors expanded during the period. Infrastructure new work made the largest positive contribution, increasing by 1.9%.
However, the wider pipeline weakened considerably as the value of new construction orders dropped by 11.8%, or £1.23bn, between the first and second quarters.
MONTHLY OUTPUT FALLS AGAIN
Construction output declined by 0.1% in June following a 0.8% fall in May and a 0.1% reduction in April.
The apparent contrast between three consecutive monthly falls and overall quarterly growth reflects the particularly strong level of output recorded in March, immediately before the second quarter began.
June’s decline was driven entirely by new work, which fell by 0.3%. Repair and maintenance activity remained unchanged during the month.
ORDERS DROP BY £1.23BN
The sharp quarterly fall in new orders was primarily caused by lower private commercial and public-sector work.
The figures indicate that, although construction output proved marginally resilient during the second quarter, the reduction in orders could weigh on activity over the coming months.
The data follows the latest S&P Global UK Construction Purchasing Managers’ Index, which showed the industry remained in contraction during July, although the pace of decline eased to its weakest level for four months.
Meanwhile, construction costs continued to rise moderately. The annual rate of construction output price inflation stood at 1.9% in the 12 months to June 2026.
ECONOMIC LEVER
Phil Hughes (main picture), deputy managing director of Paragon SME Lending, says: “While it’s encouraging to see total construction and infrastructure output edge up over the last quarter, the decline in new orders is a reminder of the sector’s fragility.
“Construction is a vital economic lever, supporting employment, supply chains and investment, so any slowdown in future workloads could have implications extending beyond the industry.
“As a lender, many construction firms we work with tell us that despite challenges, they still want to invest. These businesses have weathered unprecedented economic and political change for decades, which has only made them more resilient and solutions oriented – something we see first-hand every day and should not be underestimated. Whilst access to finance is part of the solution, so too is a stable policy environment and a planning system that enables development at pace.
“These businesses can play a major role in delivering economic growth, new homes and vital infrastructure, but they need the right operating conditions to do so. A more supportive and long-term policy environment, coupled with faster planning decisions, would drive momentum for the sector.”
