Production dropped by 2.1% in the fourth quarter

The Office for National Statistics estimates that total construction output in the UK fell by 2.1% in the fourth quarter compared with the third quarter. At the same time, overall growth was recorded for 2025 for the fifth consecutive year. However, what is the current situation in the construction industry, and how will it affect the future?

The main source: Fourth quarter output down 2.1%

The current situation in the industry?

In December, monthly construction output is estimated to have decreased by 0.5% compared with November. This followed a fall of 0.8% in November 2025, revised upward. Also it shows a decrease of 1.6% in October 2025.

The reduction in monthly output in December 2025 occurred solely due to a 2.5% decline in repair and maintenance activity. In the same time, a new works increased by 1.0%.

However, over the whole year, annual construction output rose by 1.8% compared with 2024. This marks the fifth consecutive year of annual growth, according to the ONS.

The annual rate of growth in construction output prices was 2.7% in the 12 months to December 2025.

How will the drop in production influence the UK building industry in future?

Total new orders in construction fell by 3.8% (£469 million) in the fourth quarter of 2025 compared with the third quarter. This quarterly decline was mainly driven by new private-sector commercial work and new private-sector industrial work.

Real gross domestic product (GDP) across the whole UK economy is estimated to have increased by 0.1% in the fourth quarter compared with the third quarter, following growth of 0.1% in the previous quarter. GDP in the fourth quarter of 2025 is estimated to be 1.0% higher than in the fourth quarter of 2024.

Neil Leitch, managing director of development finance at Hampshire Trust Bank, said regarding the construction figures: “These figures underline what has been evident throughout 2025. It has been a disappointing year for housebuilding, characterised by a widening gap between ambition and delivery. Developers want to build, and demand from homebuyers remains clear, but the conditions required to move projects forward with confidence are still not in place.”

Fencyx, as one of the leaders in the UK building industry, follows this situation closely. We hope that the government will take all necessary actions, and the situation will move in a better direction.

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