Construction Output Shows Modest Recovery, But Industry Remains Cautious

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Construction output saw a slight rebound in February, rising by 0.4% after two consecutive months of decline. The growth was driven by modest increases in both new work and repair and maintenance, with public sector projects leading the way. However, private housing and industrial work continued to drag overall performance.

Despite the monthly uptick, the latest ONS figures show that the sector remains flat over the past three months, reflecting a broader pattern of stagnation.

Industry experts are now warning that growing global economic uncertainty—particularly linked to President Trump’s trade tariffs—is putting additional strain on an already fragile market. Many property investors are delaying projects, adding to market instability.

Clive Docwra, managing director at McBains, commented:
“While the February figures offer a glimmer of relief, overall growth remains weak. The fall in private commercial and housing new work is concerning, and investor confidence is shaky due to the global trade tensions.”

He added that rising material costs from imported goods—driven by tariffs—could further impact contractors.

Scott Motley from AECOM offered a more optimistic long-term view:
“Government commitments to capital investment in housing and defence are encouraging. Still, contractors are being cautious in the short term, carefully managing workloads to avoid overextension.”

In a climate marked by uncertainty, the construction sector remains hopeful but wary—watching global developments closely while navigating a slow recovery.