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flag UK construction output edged up in January 2026, led by repair work, but new building fell, with housing declines raising growth concerns.

flag UK construction output rose 0.2% in January 2026, ending three consecutive monthly declines, driven by a 3.3% surge in repair and maintenance, though new construction fell 2.0%. flag Over the three months to January, overall output dropped 2.0%, with private new housing plunging 6.3%—the sharpest decline in recent years. flag Despite a slight rebound, industry leaders warn of ongoing challenges including weak investor interest, rising material costs, geopolitical tensions, planning delays, and unpredictable funding, threatening future housing delivery and growth.

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