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12 JUN 2025

CONSTRUCTION OUTPUT CONTINUES TO RISE, SAYS ONS

Construction output has grown for the third month in a row, according to new data from the Office for National Statistics.

Output in the sector rose 0.9% in April, following an increase of 0.5% in March and 0.4% in February.

The rise in monthly output in April 205 came from increases in both new work and repair and maintenance, which grew by 1.4% and 0.3%, respectively.

At the sector level, six out of the nine sectors grew in April - the main contributors to the monthly increase were infrastructure new work and private housing repair and maintenance, which rose by 2.0% and 1.5%, respectively.

Total construction output is estimated to have grown by 0.5% in the three months to April. New work increased by 0.9% and repair and maintenance grew by 0.1%.

However, the property sector continues to struggle according to the Royal Institution of Chartered Surveyors (RICS).

The May 2025 RICS UK Residential Market Survey results point to a housing market that remains subdued, though signs are emerging that the worst may be over for now.

While buyer demand and sales activity remain in negative territory, sentiment around the near-term outlook is showing tentative signs of improvement.

A net balance of -26% of survey participants reported a fall in new buyer enquiries in May. This marks the fifth consecutive month of decline, but the figure is slightly less downbeat than seen in March and April. Agreed sales also continue to edge lower, returning a net balance of -28%.

However, the sales outlook over the next three months has improved slightly, with expectations now broadly flat rather than falling. Looking further ahead, +25% of respondents anticipate an increase in sales volumes over the next year, the strongest reading since February.

 

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