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: 15/05/2025
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 up by more than one-quarter in first three months of 2025
Total construction new orders increased by 26.6% in 1Q2025 compared with 4Q2024, with £11.6 billion worth of work committed to, according to the latest ONS data. On an annual basis, this represented 10.5% more than in the same quarter last year.
Infrastructure saw the strongest growth, more than doubling new orders recorded in both 4Q2024 and 1Q2024, though the value of work in 4Q2024 had been the lowest registered since 2Q2023. Private industrial new orders also showed strong growth on the previous quarter.
Private housing new orders were down 6.8% on the previous quarter and 17.3% on 1Q2024.
Dr David Crosthwaite, chief economist at BCIS, said: ‘The new orders data presents a more positive picture than the output figures covering the first quarter of the year. However, the government must be concerned that private housing orders were down, suggesting the targeted 1.5m new homes to be delivered over this Parliament might present even more of a challenge than anticipated.’
| Sector | New orders in 1Q2025 compared with | |
| 4Q2024 | 1Q2024 | |
| Housing public | 6.7% | 34.7% |
| Housing private | -6.8% | -17.3% |
| Infrastructure | 127.8% | 108.1% |
| Public – other new work | 5.6% | -14.6% |
| Private industrial | 38.5% | -1.1% |
| Private commercial | 8.5% | -1.8% |
| All new work | 26.6% | 10.5% |
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 long-term downward trajectory of private housebuilding is clear. There have been pronounced declines following events such as the financial crisis in 2008-09 and COVID in recent decades, but the overall trend points to bigger structural changes in the delivery pipeline rather than short-term volatility.
‘It’s hard to see how current order volumes are going to translate into completions at the scale required.’
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
