Latest Government figures show total construction output fell by 1.1% in the three months to November 2025 – the steepest quarterly decline since March 2023, when output dropped by 1.4%.

Both sides of the industry were dragged lower. New work slipped by 1.0% over the period, while repair and maintenance work fell by 1.1%.

Private housing repair and maintenance was the biggest single drag on activity, plunging by 3.7% and accounting for the largest share of the overall fall.

The monthly picture was even bleaker. Output dropped by 1.3% in November alone, following a downwardly revised 1.2% fall in October. That marked a sharp reversal from September, when output had edged up by 0.3%.

November’s decline was driven primarily by a 1.9% drop in new work, with repair and maintenance also weakening, down 0.4% on the month.

According to Office for National Statistics, anecdotal evidence points to delays to work and reduced customer spending, as clients and contractors paused decisions amid economic uncertainty ahead of the Autumn Budget.

The figures underline how fragile activity remains across large parts of the sector, with housing-led work particularly exposed when confidence wobbles.

Jo Streeten, managing director, Buildings & Places at AECOM, said: “A dip in output is a reminder that confidence in the sector remains fragile, with many clients and developers still hesitating before committing to new projects.

“January will be about laying the foundations for growth this year. With inflation easing and interest rate cuts expected to continue, clients and developers should feel more confident about taking projects off the shelf and getting them moving again.