This follows a decrease of 0.4% measured in July 2024.

The increase in monthly output came from growth in new work (1.6%) while repair and maintenance fell by 1%.

Five out of nine sectors grew in August, with the main contributors being private housing new work and private commercial new work, which rose by 3.4% and 2.2%, respectively.

Chris Smith, head of specialist equipment at Aldermore Bank, commented: “It’s encouraging to see output bounce back after a sluggish July.

“Recent rate cuts and the election has brought much needed stability, and we can see this in the growth in new work in private housing and private commercial, which saw the highest increases.

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“There is cause for optimism within the sector, especially with the government’s recent plans to increase housebuilding targets.”  

Brian Berry, chief executive at the FMB, said: “Overall growth of 0.4% in the construction sector, albeit small, is welcome news but it masks a deeper concern about how homeowners are cutting back on home improvements as demonstrated by the 1% fall in August for repair, maintenance, and improvement work.

“Homeowners are tightening their purse strings against a backdrop of rising costs and economic uncertainty ahead of the October budget.”

Terry Woodley, managing director of development finance at Shawbrook, added: “Looking ahead, developers are preparing for a busier autumn, particularly with the government already introducing supportive reforms.

“There’s anticipation that the Autumn Budget will offer more clarity on recent planning process changes and the proposed 'brownfield passports.'”