New figures from the Office for National Statistics (ONS) suggested that the increase came solely from an increase in new work (2.0%), as repair and maintenance fell by 0.6%.

Monthly construction output is estimated to have grown by 0.1% in volume terms in September 2024 thanks solely to a rise in repair and maintenance (0.4%) as new work fell by 0.2%.

At the sector level, four out of the nine sectors grew in September 2024. The main contributor to the monthly increase was private housing repair and maintenance, which grew by 1.3%.

Total construction new orders fell 22.0% (£2,722 million) in Quarter 3 2024 compared with Quarter 2 2024. This quarterly decrease came mainly from private new housing and private commercial new work, which fell 31.3% (£861m) and 20.8% (£786m), respectively.

The annual rate of construction output price growth was 2.0% in the 12 months to September 2024.

Scott Motley, head of programme, project and cost management at AECOM, said: “The sector’s impressive run of form continues, and firms will be encouraged by the pipeline of new work available to help stem the traditional winter slowdown.

“If it wasn’t clear before, yesterday’s Mansion House speech shows that infrastructure investment is the cornerstone of the government’s plans for economic growth. The task for the sector will be seizing on these opportunities effectively and helping align private funding with public sector investment so that schemes get on-site quickly.

“Healthcare, transport and education continue to be the three priority areas for work, both new-build and retrofit. Despite the prospects of increasing labour costs, bigger order books and a more certain pipeline of new work should help to offset any concerns and put firms on the front foot heading into 2025.”

Clive Docwra, managing director of property and construction consultancy McBains, said: “Today’s figures are a mixed bag for the industry. The good news is that construction outperformed the economy as a whole over the third quarter of the year, seeing an 0.8% increase in output compared to the 0.1% in GDP overall.

“On the downside, the September figures for construction show a slowdown in growth of just 0.1% compared to August. Furthermore, after housebuilding had seen a recent mini-resurgence, figures show private housing new work in September dropped by 0.4%, while private commercial work fell by 0.1%.

“These decreases could have been as a result of uncertainty ahead of the Budget with investors holding off on decisions until the picture becomes clearer.  An interest rate cut in December is also looking unlikely because of concerns that the borrowing spree outlined in the Budget will fan inflation so costs are likely to remain high, putting some major projects out of commission for the time being.

“However, our clients in many work sectors are still feeling bullish for the long term, and will be hoping this respresents merely a blip in the recent recovery.”