Construction output is estimated to have increased by 0.5% in the final three months of 2024, according to the Office for National Statistics.

Figures increased compared with quarter 3 of 2024 (Juy-September). This came solely from an increase in new work (1.2%), as repair and maintenance fell by 0.4%.

Monthly construction output is estimated to have fallen by 0.2% in volume terms in December 2024.

This came solely from a fall in repair and maintenance (1.8%) as new work grew by 1.1%.

At the sector level, five out of the nine sectors fell in December 2024. The main contributors to the monthly decrease were non-housing repair and maintenance, and private housing repair and maintenance, which fell by 1.8% and 1.4%, respectively.

Total construction new orders fell by 2.4% (£231m) in quarter 4 2024 compared with quarter 3 2024. This quarterly decrease came solely from infrastructure new work and private industrial new work, which fell by 23.5% (£496m) and 19.7% (£197m), respectively.

Annual construction output increased by 0.4% in 2024 compared with 2023; this is the fourth consecutive year of annual growth.

The annual rate of construction output price growth was 3.0% in the 12 months to December 2024.

Scott Motley, head of programme, project and cost management at AECOM, said: “A month-on-month dip in output, particularly within a quarter of growth, wouldn’t usually in itself be a major concern for contractors.

“However, with growth forecasts being revised and economic conditions remaining challenging, they will be hoping that it’s not the first sign of a trend for 2025.

“It’s encouraging that the current pipeline of work for contractors is healthy, with most already having filled their order book for the year, but firms are minimising the risk they’re willing to take on, and that’s pushing up tender prices and slowing down project starts.

“The sector will be looking to the government’s long-awaited industrial strategy as a catalyst to help firms break out of this holding pattern.

“Thinking more long-term, looming labour shortages will need to be addressed with moves to boost training and improve access to skilled overseas workers.”