FX.co ★ UK Construction Output Drops More than Estimated

UK construction output fell 1.8% year-on-year in May 2026, after a 1.6% decline in April, marking a seventh consecutive month of contraction. The downturn was sharper than market expectations for a 1.1% decrease. New work declined for the eighth month in a row (-5.8% vs. -5.5% in April), while growth in repair and maintenance slowed to a five‑month low (3.8% vs. 3.9%).

On a monthly basis, construction output dropped 0.8%, a much steeper fall than the 0.1% decrease recorded in April, signaling a second consecutive monthly decline. This weaker performance reflected a 2.1% contraction in repair and maintenance work, despite a modest 0.2% increase in new work.

Despite the soft May data, construction output rose 1.6% in the three months to May, posting a third successive increase on a rolling three‑month basis. This growth was underpinned by gains in both new work (1.1%) and repair and maintenance activity (2.1%).