FX.co ★ UK Construction Output Drops for 3rd Month

UK construction output declined by 0.2% year-on-year in January 2026, following a 0.3% drop in December and coming in worse than market expectations for a smaller 0.1% fall. This was the third consecutive annual decrease in output. New work contracted at a faster pace (-3.3% vs. -1.3% in December), while repair and maintenance activity picked up (4.3% vs. 1.2%).

On a monthly basis, construction output edged up 0.2% in January, rebounding from a 0.5% decline in December. This was the first monthly increase in four months, as new work fell further (-2.0%), but repair and maintenance rose sharply (3.3%).

Over the three months to January, total construction output was down 2.0%, with new work decreasing by 3.2% and repair and maintenance slipping by 0.4%.