The latest Office of National Statistics (ONS) data states the increase was predominantly driven by a 1.7% rise in all new work, which stemmed from growth in private housing (+2.3%) and infrastructure (+3.6%).
However, on a quarterly basis output fell by 0.8% in August due to decreases in both repair and maintenance, which fell 0.6% and all new work, which fell 0.9%.
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Michael Thirkettle, Chief Executive of McBains, said the figures indicate the construction industry is "treading water" with Brexit looming in the near future.
"With a lack of clarity from the government on the Brexit deal, many UK companies and investors are biding their time on committing to new projects, which means confidence remains fragile," he said.
"Cost pressures are impacting too, with rising prices for imported materials because of the weak pound.
"Although today's figures show growth in private housing, a long-term commitment from government to give an additional boost to the UK housebuilding sector would have been a welcome tonic, yet Theresa May's announcement that just an additional 25,000 homes for social rent would be built received an underwhelming response from the industry."
(LM/MH)
