UK Construction Output Falls Less than Expected

UK construction output dropped 1.0% year-on-year in April 2026, worsening from a 0.3% decline in the previous month and marking the sixth consecutive month of contraction. However, the drop was less severe than market expectations of a 1.7% decrease. New work continued to weigh on activity, falling at a faster pace (-4.8% vs. -4.4% in March), while growth in repair and maintenance eased to a four-month low of 4.4% from 5.7%. On a monthly basis, construction output edged up 0.1%, slowing sharply from a 1.5% increase in March and representing the weakest expansion since December. The softer performance reflected a 0.3% decline in new work and slower growth in repair and maintenance activity (0.6%). Despite the weak April reading, construction output rose 1.6% over the three months to April, pointing the second consecutive increase in the rolling three-month measure. Growth was supported by gains in both repair and maintenance activity (3.4%) and new work (0.3%).

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