The drop in monthly output follows a 0.2% decline in December 2024.

The ONS solely attributed the fall from a reduction in new work (0.7%), while repair and maintenance grew by 0.4%.

Survey responses noted adverse weather — including heavy rain, snow, and storms —as having a negative effect on output.

Three out of nine sectors fell in January 2025; the main contributors to the monthly decrease were private commercial new work and private housing new work, which declined by 6.1% and 1.8%, respectively.

Construction output is estimated to have increased by 0.4% in the three months to January 2025.

This follows an increase in new work (1.4%), while repair and maintenance fell by 0.9%.

Damien Wynne, co-founder of housebuilder Q New Homes, commented: “This [decline] could be put down to a winter slowdown which sometimes means projects are delayed in the planning stage, however it is more likely the result of a hesitant economy.

“In February, the Bank of England lowered the base rate to 4.5%, which may help ease borrowing costs and support future growth in the coming months.

“However, it appears this has yet to translate into increased construction activity.

“While government incentives for infrastructure development and housing initiatives may provide some support, developers remain cautious.”

Lauren Pamma, head of energy and infrastructure at Aldermore Bank, said: “The construction industry has seen a difficult few months since the start of the new year.

“Businesses are facing rising costs of supplies and increased energy, fuel, and wage costs which continue to hamper growth.

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“The outlook for the year ahead is currently unclear, particularly with the recent geopolitical landscape and uncertainty around cross-border tariffs.

“These could disrupt supply chains moving forward, and countries avoiding US tariffs by reallocating goods to other markets could negatively impact competing British goods in these markets.

“The government’s proposals for streamlining planning processes for new infrastructure projects and commitment to increasing housebuilding targets should benefit the industry, and there are signs that this year may be better than 2024, but it’ll take time to build up to continued growth.”

Joana Palha, associate director at specialist innovation consultancy Ayming UK, added: “The drop in construction output underscores the persistent challenges facing the sector.

“External pressures such as mounting costs for supplies and labour, stricter environmental regulations, and ongoing economic uncertainty continue to weigh considerably on the industry, and this latest decline is a reminder that growth in construction remains fragile.

“Innovation and growth come hand in hand, and we need to focus on the former to kickstart growth in the construction sector.

“This means greater support for construction firms in helping them access the necessary technology, skills and funding to increase output and productivity.”