Total construction output fell by 0.3% over the month, following flat growth in July, signalling continued caution across the industry.

Over the three months to August 2025, overall output grew modestly by 0.3%, driven largely by repair and maintenance, which increased by 1.3%. In contrast, new work fell by 0.4% during the same period, underscoring subdued investment in new projects.

At the sector level, five of the nine construction sectors recorded growth, with private housing repair and maintenance emerging as the strongest performer, rising by 5.6%. However, the latest monthly decline in August came solely from a 1.5% drop in repair and maintenance, partially offset by a 0.5% increase in new work.

Clive Docwra, managing director of property and construction consultancy McBains, said the data reflected the “subdued economic picture” facing the sector.

“Today’s figures reflect the subdued economic picture in the industry at present, with output falling by 0.3% following no growth in July, and underperforming against the overall economy which grew by 0.1% in August,” he said.

“The fact that new work fell by 0.4% over the three months to August reflects the cautiousness by investors to commit to spending on projects while economic uncertainties persist. A glimmer of hope is that new work orders increased in August by 0.5%.”

Docwra added that many developers are likely to delay decisions until after the Chancellor’s Budget next month, with hopes for policies that will “get Britain building”.

“Abolishing stamp duty and reforming council tax – the latter which is still based on values from the early 1990s – would lower the barrier for moving and provide an injection of confidence in the housebuilding market, which remains sluggish,” he said.

Jo Streeten, managing director, buildings & places at AECOM, echoed similar concerns, warning that the latest figures highlight the fragility of the sector heading into the winter months.

“A month of declining output in our peak season is a reminder of the fragile footing the sector remains on as it heads into the typically more testing colder months,” said Streeten.

“Despite this, the underlying demand for construction is still there and the challenge now is retaining momentum in the face of ongoing cost pressures.”

Streeten emphasised the need for renewed activity in both housebuilding and commercial development, noting that Grade-A office space remains in short supply.

“To make sure this slowdown doesn’t take hold, the long-anticipated boom in housebuilding needs to start taking shape soon, while the commercial sector must keep up its strong run,” she added.

“The government’s investment plans for infrastructure and housing are clear. Now it’s about how quickly the sector can capitalise on them, which will rely on cost pressures easing. All eyes are already on the Budget for measures to help.”