Construction production rose by 0.1% in July, according to the latest figures from the Office for National Statistics (ONS).
But industry experts caution against looking beyond the seemingly positive number.
The 0.1% rise follows a 0.1% decline in June 2026 and a 0.8% decline in May 2026.
The increase in monthly production in July 2026 came solely from the increase in repair and maintenance work, which grew by 0.8%, while new work fell by 0.4%.
The main contribution to the monthly increase in repairs and maintenance was private housing repair and maintenance, which grew by 1.7%, while the largest contribution to the decline in total new business was a 4.9% decline in new private housing business.
Clive Docwra, managing director of property and construction consultancy McBains, said: “While the headline figure may show an increase in production in July, the fact that this came solely from repairs and maintenance work reflects the difficult conditions affecting the industry.
“What is particularly worrying is that new business in private housing fell by almost 5% in July, at a time when the government is talking down the housebuilding sector.
“It is clear that many construction companies are still feeling the impact of cost and inflationary pressures due to the Middle East crisis, so the overall picture is one of sinking.”
Over the three months to July, total construction production is estimated to have fallen by 0.5%.
The decline follows four consecutive increases in the three-month series, with strong growth in the three months to April and May of 1.3% and 1.5% respectively.
During the most recent three-month period, new business decreased by 0.4% and maintenance decreased by 0.7%.
At the sector level, six of the nine sectors declined in the three months to July 2026; The main negative contributor to the decline was private housing repair and maintenance, which fell by 1.7%.
Neil Leitch, managing director of development finance at Hampshire Trust Bank, said: “These figures are another reminder that housing ambition and housing delivery are two very different things. If we want a real reset in housebuilding, we have to get to grips with the conditions that determine whether developers are prepared to commit capital and start building in the first place.
“Development is becoming progressively more complex and more expensive. Developers can spend significant sums to get a scheme through planning before taking into account Section 106, CIL, net biodiversity gains and additional costs and requirements around building safety. At the same time, local planning authorities are being asked to manage an increasingly complex system while many of them remain grossly under-resourced.”
