UK Construction shows pockets of growth despite overall output dip

By Danny BallPublished On: April 17th, 2026Categories: Top Stories

UK construction output fell by 2.0% between December 2025 and February 2026, even as overall GDP grew by 0.5%, according to the latest figures. However, growth in key areas of the sector points to underlying resilience and emerging opportunities.

While the services and production sectors recorded increases of 0.5% and 1.2% respectively, parts of the construction industry continued to perform strongly.

Over the three-month period, infrastructure and public works output rose by 2.1%, reflecting continued investment in major projects.

Private housing repair and maintenance saw the strongest growth, increasing by 6.7%, suggesting sustained demand for upgrade and retrofit activity across the housing stock.

Output in new housing declined by 2.5%, with productivity in new public housing returning to levels last seen in 2019.

Brick deliveries, often used as a forward indicator of construction activity, were 34.5% lower than February 2019 levels.

However, this may also reflect projects preparing to move into later delivery phases following a slower winter period.

NFB highlights resilience and potential for recovery

National Federation of Builders Chief Executive Richard Beresford said: “The economy is in a stronger place than many presumed; however, growth in construction is proving elusive and where growth has occurred, it remains way below the 2023 baseline it is set against and in areas where public funding has been strong.”

Rico Wojtulewicz, Director of Policy and Market Insight at the National Federation of Builders, said: “The winter period is when projects are gearing up for delivery, so growth is rarely certain. However, construction insolvency is up, brick deliveries are down and material prices continue to rise. Industry confidence remains low.

It was very pleasing to see growth in private housing repair and maintenance, and it warrants further investigation into what the drivers were, as it could signal a green economy growth.

The impact of the war in Iran has not yet been fed into the GDP figures, but industry is already expressing concerns. We would therefore hope that the Government’s proposed procurement and planning reforms are put into law as soon as possible, particularly those to support SMEs, such as the Medium sized site.”

Policy reform and investment key to unlocking growth

While overall output has dipped, continued growth in infrastructure and repair sectors highlights areas of momentum within the industry.

With planned government reforms and sustained investment, there is potential for construction activity to strengthen further in the months ahead, particularly as projects move out of winter slowdown and into delivery phases.