FX.co ★ UK Construction Output Dips More than Expected

UK construction output fell by 2.5% year-on-year in July 2026, deepening from a 2.3% decline in June and marking the ninth consecutive month of contraction. This was the sharpest drop since December 2025 and worse than market expectations of a 2.3% fall.

New work decreased for the tenth month in a row (-5.1% vs -5.9% in June), while growth in repair and maintenance slowed to a seven-month low (1.0% vs 2.8% previously). On a monthly basis, total construction output inched up 0.1%, reversing the 0.1% decline recorded in June and indicating the first monthly increase in four months.

Within this, repair and maintenance work rose by 0.8%, whereas new work fell by 0.4%, its fourth consecutive monthly decline. Over the three months to July, overall construction output declined by 0.5%, bringing an end to four straight periods of growth, with both new work and repair and maintenance down 0.4% and 0.7%, respectively.