This follows a modestly revised 0.2% increase in February and a 0.3% decline in January, highlighting a slow but steady improvement in sector performance as spring begins.

The month-on-month growth was driven by gains across both key areas: new work increased by 0.6%, and repair and maintenance by 0.4%. Anecdotal evidence from ONS survey respondents pointed to milder weather conditions helping to support productivity on-site during the month.

Notably, five out of nine construction sub-sectors posted growth, with private housing and infrastructure new work leading the charge—recording gains of 2.3% and 2.5% respectively. These figures align with the continued demand for housing and the government’s infrastructure agenda, although wider concerns about market uncertainty and policy shifts remain.

Despite the positive momentum in March, the broader picture over the first quarter of 2025 shows that total construction output was flat (0.0%) compared with Q4 2024. Within this, new work saw a 0.9% rise, but repair and maintenance slipped by 1.2%, tempering the overall outlook.

Perhaps the most eye-catching figure from the release was a 26.6% (£2.45 billion) increase in new construction orders in Q1 2025—an encouraging sign of future activity. Infrastructure and private industrial work were the primary drivers behind this uptick in forward-looking demand.

Clive Docwra, managing director of McBains, welcomed the March growth figures but urged caution: “With March’s increase in output coming off the back of moderate growth in February, this will give further cheer to the construction industry, especially with the increase in new work in housing and infrastructure.

“However, it’s too early to say if the sector has turned a corner in terms of growth being maintained. Caution amongst investors is still apparent in a number of sectors due to the current geopolitical climate and the UK economic outlook – and bear in mind that this return covers the period before President Trump’s tariffs were announced, which shook investors’ confidence.

“Furthermore, although private housing new work grew by 2.3% in March, the industry will be worried that this week’s announcement on the proposed immigration changes restricting the number of skilled workers will have a significant impact on future work capacity – and it will also have a huge bearing on whether the government can meet its housing targets too.

“A cut in interest rates next month would help give an injection of confidence in the industry during a period of uncertainty.”

Scott Motley, head of programme, project and cost management at AECOM, echoed a sense of cautious optimism: “A continued uptick in output suggests the sector may be entering a more stable period as it moves into what’s typically a busier time of year. While the improvement offers encouragement, maintaining momentum will be the sector’s number one priority as it continues to contend with wider economic pressures.

“The government has set the tone with its ambition to deliver new infrastructure and housing, but it needs the private sector’s support to get large-scale projects moving. The latest round of interest rate cuts will have boosted confidence in the short term, however the upcoming Spending Review is uniquely placed to give the sector long-term clarity over the major investment decisions that must be made in order to deliver the infrastructure we desperately need across the UK.”