Pre-Budget economic uncertainly caused construction output to fall in November last year.

Latest figures from the Office for National Statistics showed monthly construction output fell by 1.3% in November 2025. This follows a downwardly revised decrease of 1.2% in October 2025 and a 0.3% increase in September 2025.

Total construction output is estimated to have fallen by 1.1% in the three months to November 2025, marking the largest fall since March 2023 (1.4% fall).

Over the three-month period, both new work and repair and maintenance fell by 1.0% and 1.1%, respectively.

At the sector level, four out of the nine sectors fell in the three months to November 2025; the main negative contributor to the decrease was private housing repair and maintenance, which fell by 3.7%.

Anecdotal evidence suggests that delays in work and customer spending were affected by economic uncertainty ahead of the autumn budget announcement.

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.

“Embedding AI and digital tools from the earliest stages of infrastructure delivery will be critical to ensure projects have an immediate impact, helping cut delays, reduce risk and turn renewed confidence into a stronger, more sustainable pipeline for the year ahead.”