The Building Cost Information Service (BCIS) is the leading provider of cost and carbon data to the UK built environment. Over 4,000 subscribing consultants, clients and contractors use BCIS products to control costs, manage budgets, mitigate risk and improve project performance.
Published: 15/08/2025
The Office for National Statistics (ONS) publishes quarterly data(1) measuring the value and volume of main contractors’ new orders in Great Britain by sector and type of work. Its intention is to provide a forward-looking snapshot of both current confidence and potential future activity in the construction industry.
New orders down in second quarter of 2025
Total construction new orders decreased by 8.3% in 2Q2025 on 1Q2025 with £10.8 billion worth of work committed to, according to the latest ONS data. On an annual basis, new orders fell by 12.0% on the same quarter last year.
Non-housing public work, excluding infrastructure, saw the strongest growth, with new orders rising by more than one-third (35.7%) on the quarter. The value of work in this sector was the highest recorded since 2Q2014, more than 10 years ago.
Public new housing orders also showed strong growth on the previous quarter.
Private industrial new orders were down 24.8% on the previous quarter and 38.0% on 2Q2024.
Dr David Crosthwaite, chief economist at BCIS, said: ‘A fall in total construction new orders is often a precursor to a shrinking pipeline of output in future.
‘The latest data point to decreases in commercial, industrial and infrastructure orders as the main culprits. In part, this may be symptomatic of the lack of clearly defined private finance routes in the Infrastructure Pipeline. Without the investment fine print, there’s little impetus yet for investors to engage.
| Sector | New orders in 2Q2025 compared with | |
| 1Q2025 | 2Q2024 | |
| Housing public | 27.0% | -10.0% |
| Housing private | -0.2% | -27.0% |
| Infrastructure | -23.0% | 28.6% |
| Public – other new work | 35.7% | 26.5% |
| Private industrial | -24.8% | -38.0% |
| Private commercial | -17.0% | -30.4% |
| All new work | -8.3% | -12.0% |
Source: ONS – New Orders for construction: volume seasonally adjusted growth rates, by main contractor, by sector, constant prices, Table 2
Source: ONS – New Orders for construction: volume seasonally adjusted growth rates, by main contractor, by sector, constant prices, Table 2
Dr Crosthwaite added: ‘The continued, long-term decline in private housing new orders is alarming too. The stakes are high for this government. Its 1.5 million new homes goal is dependant on activity in the private housing market ramping up.
‘Promisingly, the latest output figures showed a rise in private housebuilding for the second quarter, but this was nowhere near the growth required. It’s still impossible to see how the government plans to scale up housebuilding with little to no control over housebuilders’ output.’
Source: ONS – New Orders for construction: volume seasonally adjusted growth rates, constant prices, Table 2
To keep up to date with the latest industry news and insights from BCIS, register for our newsletter here.
(1) Office for National Statistics – New orders in the construction industry - here
