Construction output returned to growth in August after a slump in July, according to the latest official figures.

Monthly output edged up by 0.4% following a 0.4% fall the previous month, with most of the increase coming from a 1.6% growth in new work.

Output growth in August was led by a 1.6% rise in new work

Five out of nine sectors studied by the Office for National Statistics grew in August. The main contributors were private housing new work and private commercial new work, which grew by 3.4% and 2.2% respectively.

Output is estimated to have grown by 1% in the three months to August despite zero growth in repair and maintenance, with increased activity in the period coming from a 1.7% increase in new work.

The figures come two days after AtkinsRealis reported renewed confidence in the construction sector as the consultant upgraded its tender price forecast for the next 12 months to 3%, up from 2.25% in 2024.

Last week, S&P Global UK Construction Purchasing Mangers’ Index (PMI) showed a score of 57.2 in September, indicating the fastest increase in construction activity for more than three years.

Respondents to the survey commented on a robust demand for renewable energy infrastructure and an uplift in work for major projects.