U.K construction output fell 0.2% year-on-year in January 2026, following a 0.3% decline in the previous month and missing market forecasts for a smaller 0.1% drop. The latest reading marked the third straight session of yearly decline, with new work falling at a steeper rate (-3.3% vs -1.3% in December) even as repair and maintenance activity accelerated (4.3% vs 1.2%). On a monthly basis, construction output grew 0.2%, reversing a 0.5% decrease in December and marking the first fall in four months, as new work shrank (-2.0%) but repair and maintenance increased (3.3%). Over the three months to January, total construction output dropped 2.0%, with both new work, and repair and maintenance down by 3.2% and 0.4%, respectively.

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