This dip came solely from a decrease in new work (4.5% fall), as repair and maintenance increased by 4.0%.

The decrease over the three months came from infrastructure new work and private housing new work, which fell 9.3% and 5.2%, respectively.

The main positive contributions coming from non-housing repair and maintenance, and private housing repair and maintenance, which increased 3.2% and 3.3%, respectively.

The increase in monthly output follows three consecutive monthly falls, with the monthly value in levels terms at £15.42bn in January 2024.

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The increase in monthly output came from increases in both new work (1.1%) and repair and maintenance (1.2%). 

At the sector level, six out of the nine sectors saw a rise in January 2024; the main contributors to the monthly increase were private new housing, and non-housing repair and maintenance, which increased 2.6% and 1.9%, respectively.

Terry Woodley, managing director of development finance at Shawbrook, commented: “The latest ONS figures showing a decrease in construction activity in the three months to January are balanced by a welcome uptick in construction activity MoM. While falling inflation offers some relief, it may not have been enough to fully offset the headwinds the industry faces.

"This could delay the potential boost to housebuilding anticipated from softening mortgage rates."