The increase, which follows an upwardly revised decrease of 0.3% in October 2024, came from rises in both new work (0.3%) and repair and maintenance (0.5%).

At the sector level, five out of the nine sectors grew in November 2024; the main contributors to the monthly increase were private commercial new work and non-housing repair and maintenance, which grew by 3.1% and 1.1%, respectively.

Construction output is estimated to have increased by 0.2% in the three months to November 2024; this came solely from an increase in new work (0.4%), as repair and maintenance was flat (0.0%) over the period.

Scott Motley, head of programme, project and cost management at AECOM, said: “These figures reflect the immediate aftermath of the Budget, so it’s positive to see that construction activity picked back up quickly following a period of planning hiatus.

“Further challenges have since developed though. Even prior to recent changes in government borrowing costs, which will impact the Treasury’s ability to fund the commitments made in the Budget, forecast demand suggests any growth in 2025 will be subdued. Construction output growth had been forecast at around 2.5% this year, but we’re anticipating downward revisions to that figure over the course of the winter.

“As we await a tempering in the financial markets, recent volatility is a fresh reminder of the need for the property industry to bridge the gap between public and private sector if we are to breed confidence in proposals and inward investment.”

Terry Lloyd, head of vendor at Paragon Bank’s SME Lending division, added: “After a challenging year for the construction industry, it’s positive to see a rise in construction output for the three months to November.

“Although the period covered the winter period, typically a time when the industry is impacted by adverse weather, it’s great to see work being able to continue on-site still. We saw new work starts as a key driver of output in October’s construction data, which could be down to Labour’s new housing targets driving more construction – which is a real positive as we head into the colder months.”