UK Construction Output Falls for 8th Straight Month

UK construction output contracted 2.3% year-on-year in June 2026, deepening from a revised 2.0% decline in the prior month and marking the eighth consecutive month of contraction. Still, the fall was slightly milder than the 2.4% decline expected by markets. New work fell for a ninth straight month (-5.9% vs -6.5% in May), while growth in repair and maintenance eased to a six-month low (2.8% vs 4.6%). On a monthly basis, construction output edged down 0.1%, significantly less than the 0.8% decline in May, although it marked a third consecutive monthly drop. The softer decline reflected stagnant repair and maintenance activity, while new work fell 0.3%, extending its monthly contraction streak. Despite the weak June reading, output rose 0.3% over the three months to June, marking a fourth consecutive increase in the rolling measure. Growth was supported by both new work (0.4%) and repair and maintenance activity (0.2%).

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