2026.10.1506:15:04UTC+00UK Construction Output Dips More than Estimated

UK construction output fell by 1.8% year-on-year in August 2026, following a downwardly revised 1.9% decline in July and marking the tenth consecutive month of contraction. Although this was the slowest pace of decline since April, it was still sharper than market expectations of a 1.6% drop.

New work shrank for the eleventh consecutive month, with output down 5.8% in August compared with a 4.5% decline in July, while growth in repair and maintenance accelerated markedly, rising 3.6% after a 1.6% increase previously.

On a monthly basis, total construction output slipped 0.2% in August, easing from a 0.5% fall in July and representing the smallest monthly decrease in four months. Repair and maintenance continued to grow, up 0.8%, but new work fell by 0.7%, extending its losing streak to five months.

Over the three months to August, construction output declined by 1.0%, recording a second consecutive three‑month period of contraction. Both main components weakened, with new work down 1.4% and repair and maintenance down 0.3%, underscoring broad-based softness across the sector over the period.