This follows a downwardly revised increase of 0.2% in February and an unrevised decrease of 0.3% in January 2025.

The growth in March came from both new work and repair and maintenance, which rose by 0.6% and 0.4%, respectively.

Anecdotal evidence from survey returns also noted the positive effects of warmer and milder weather.

Five out of the nine sectors grew in March, with the main positive contributors being private housing and new infrastructure work, which saw an uptick of 2.3% and 2.5%, respectively.

Total construction new orders grew by 26.6% in Q1 2025 compared with Q4 2024; this quarterly increase came mainly from new infrastructure work and new private industrial work.

Terry Woodley, managing director of development finance at Shawbrook, commented: “Following an uplifting February, March has seen the construction industry continue the upward trend in output.

“Despite varying factors, there has been an uptick in activity within the sector, stemming from an increase in new work as well as repair and maintenance, which have boosted the figures despite economic instability in the UK and globally.

“This could continue as positive news comes out in the industry, such as the US-UK deal seeing a zero-tariff deal on essential building materials, and the Planning and Infrastructure Bill making the rounds in the House of Commons.

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“However, uncertainty and wider tariff deals may impact other aspects of the construction industry.

“Similarly, tightened worker visas announced recently may only aggravate the worker shortage in the country and delay building completions, which we may see the effect of later in the year.

“It’s clear though that the government is prioritising housebuilding, which should instil developers with confidence.”

Neil Leitch, managing director of development finance at Hampshire Trust Bank, said: “The increase in private housing is welcome after last month’s drop, and shows that developers are finding ways to navigate the many hurdles they face in producing the homes the nation so badly needs.

“The planning system remains a concern, acting as a bottleneck, where SME developers in particular face unacceptably long waits for decisions.

“These delays can be disastrous for such projects, before you even consider the cost pressures and labour shortages the developers have to account for.

“Alongside improving the planning process, as an industry we need to ensure developers enjoy access to funding that reflects their actual needs.

“That means flexibility and a bespoke structure, allowing the developer to push ahead with confidence.

“Without that, it will be an uphill battle to improve the rate of housing output.”