The increase came solely from an increase in new work (1.2%), as repair and maintenance fell by 0.4%.

Monthly construction output is estimated to have fallen by 0.2% in volume terms in December 2024; this came solely from a fall in repair and maintenance (1.8%) as new work grew by 1.1%.

At the sector level, five out of the nine sectors fell in December 2024; the main contributors to the monthly decrease were non-housing repair and maintenance, and private housing repair and maintenance, which fell by 1.8% and 1.4%, respectively.

Total construction new orders fell by 2.4% (£231 million) in Quarter 4 2024 compared with Quarter 3 2024; this quarterly decrease came solely from infrastructure new work and private industrial new work, which fell by 23.5% (£496m) and 19.7% (£197m), respectively.

Annual construction output increased by 0.4% in 2024 compared with 2023; this is the fourth consecutive year of annual growth.

The annual rate of construction output price growth was 3.0% in the 12 months to December 2024.

Jonathan Moore, director, north and Scotland at AECOM, said: “A month-on-month dip in output, particularly within a quarter of growth, wouldn’t usually in itself be a major concern for contractors. However, with growth forecasts being revised and economic conditions remaining challenging, they will be hoping that it’s not the first sign of a trend for 2025.

“It’s encouraging that the current pipeline of work for Scottish contractors is healthy, with most already having filled their order book for the year, but firms are minimising the risk they’re willing to take on, and that’s pushing up tender prices and slowing down project starts.

“The sector will be looking to the government’s long-awaited industrial strategy as a catalyst to help firms break out of this holding pattern. Thinking more long-term, looming labour shortages will need to be addressed with moves to boost training and improve access to skilled overseas workers.”

Clive Docwra, managing director of property and construction consultancy McBains, added: “There will be little surprise among the industry that December witnessed a fall in output, given the ups and downs of the previous eleven months.
 
“Despite the disappointing December return, the industry will take heart that new work orders actually grew during the month, but more importantly the fourth quarter of 2024 saw half a percentage rise in output, which is more than perhaps many expected.  It means a number of industry sectors will be looking forward with a degree of optimism in terms of the next few months.
 
“In particular, the recently published planning reforms and falling interest rates will hopefully inject new momentum into the housebuilding sector, although skills shortages and cost inflation on materials could still have an impact on significant growth across work sectors.”