New figures out today from the Office for National Statistics (ONS) found that both new work and repair and maintenance fell over the three-month period, by 1.4% and 0.3%, respectively.

At the sector level, five out of the nine sectors fell in the three months to August 2026. The main negative contribution to the decrease was private new housing, which fell by 3.2%.

Monthly construction output is estimated to have fallen by 0.2% in August 2026; this is the fourth consecutive decrease in the monthly series, including a decrease of 0.5% in July 2026 (revised from an increase of 0.1%), and a decrease of 0.3% in June 2026 (revised from a decrease of 0.1%).

The decrease in monthly output in August 2026 came solely from a decrease in new work, which fell by 0.7%, while repair and maintenance grew by 0.4%; the main contribution to the monthly decrease in new work was private new housing, which fell by 1.9%.

Jo Streeten, managing director, Buildings & Places at AECOM, said: “Another fall in output underlines just how fragile conditions remain in the sector. Higher financing costs and uncertainty over future demand continue to hold back client decisions, leaving too many projects struggling to move from planning to delivery.

“With pressure on the public finances limiting the scope for major new spending commitments, the industry shouldn’t expect the upcoming Budget to deliver a silver bullet. Much of the government’s infrastructure investment is already in the pipeline, so the focus must now be on delivery.  

“But the sector will be keenly awaiting measures that support economic growth, ease inflationary pressures and create the conditions for lower borrowing costs, which will spur confidence to bring projects forward.”