ONS Construction Output Report Summary - February 2025
The latest Office for National Statistics (ONS) Construction Output Report reveals annual construction grew by 0.4%, marking a fourth consecutive year of annual growth. This article provides a summary of the key findings identified regarding the performance trends and sectoral challenges shaping the construction industry.
Monthly Performance Analysis
In December 2024, UK construction output showed a 0.2% decrease in volume terms. This fall can be attributed to one key area, as repair and maintenance fell by 1.8%. However, new work was on the rise as it grew by 1.1%.
A closer look at the sectoral level reveals that five of the nine construction sectors fell during this period. The sectors contributing most to this decrease were non-housing repair and maintenance, and private housing repair and maintenance. Non-housing repair and maintenance fell by 1.8% and private housing repair and maintenance fell by 1.4%.
Quarterly Trends
Construction output is estimated to have grown by 0.5% in Q4 (Oct to Dec 2024) compared to Q3 (Jul to Sep 2024). This increase came solely from an increase in new work (1.2%) whereas repair and maintenance decreased by 0.4%.
Total construction new orders decreased by 2.4% (£231 million) in Q4 2024 compared against Q3 2024. This quarterly decrease came directly from infrastructure new work and private industrial new work. Infrastructure new work fell by 23.5% (£496 million) and private industrial new work fell by 19.7% (£197 million).
Annual Review
Annual Construction grew by 0.4% in 2024 compared to the prior year which demonstrates a fourth consecutive year of annual growth. The annual rate of construction output price growth was 3.0% for 2024.
The UK construction industry continues to show resilience, with annual growth reaching 0.4% in 2024, marking the fourth consecutive year of expansion. Despite a slight monthly decline in December and a drop in total new orders in Q4, the sector’s quarterly growth of 0.5% highlights the steady demand for new work. While repair and maintenance activities have faced setbacks, the overall increase in construction output, driven by new projects, suggests a gradually recovering industry.
Source: Construction output in Great Britain – Office for National Statistics
