The UK construction industry entered 2026 with a sharp decline in activity due to the impact of a sluggish economy and low private investor confidence, according to data intelligence provider Glenigan. Project starts decreased by 31 per cent over the three months to the end of January, the industry analyst’s…
Data
Annual construction output rises despite final-quarter dip
Annual construction output increased by 1.8 per cent in 2025 in the fifth consecutive year of annual growth, according to the latest data from the Office for National Statistics (ONS). However, total output fell by 2.1 per cent in the final quarter (Q4) of the year compared with Q3, due…
PMI data: ‘Brighter days ahead’ as confidence rises
Commentators believe the sector could be climbing out of its long-running slump as business confidence hit its highest level in eight months. The Purchasing Managers’ Index (PMI) from S&P Global also rose to 46.4 in January, its highest level since June 2025. Any reading below 50 shows industry activity shrinking.…
Regional survey indicates ‘resilient pipeline’ for 2026
Major parts of the construction sector have secured “a resilient pipeline” in 2026, after higher costs hit performance in 2025. Increases in public and private investment across Belfast, Birmingham, Leeds and Manchester have boosted prospects in student accommodation, hotels, offices and homes, according to the latest edition of the Deloitte…
Urgent stimulus measures ‘essential’ to help ailing industry, warns CLC
The Construction Leadership Council (CLC) has said that “targeted stimulus measures” from the government are required urgently, as weak demand and rising costs continue to dash hopes of an industry recovery. An update from the body’s materials supply chain group said that action was needed due to “persistent difficulties” and…
Construction growth downgrade sparks insolvency fears
Construction output is expected to grow by just 1.7 per cent in 2026 amid ongoing geopolitical uncertainty, a trade body has warned. The forecast is a major downgrade on previously predicted growth of 2.8 per cent, made last autumn, the Construction Products Association (CPA) said. In a new report, published…
Construction downturn could give way to ‘phoenix moment’, says Glenigan
UK construction activity fell sharply in 2025, but conditions are emerging that could support a “phoenix moment” recovery this year, industry analyst Glenigan has said. The value of projects starting on site dropped by 20 per cent year-on-year in 2025, according to its Construction Review for January. But conditions are…
Stagnant building materials market set to drag into 2026, BMF forecasts
Growth in the building materials market has stalled and is not expected to recover before mid-2026, according to the latest Builders Merchants Federation (BMF) data. The BMF’s Winter Forecast downgraded its annual sales growth projection for 2025 from 2.5 per cent to 1.4 per cent, citing a sharp slowdown in…
Sector activity decline slows as business confidence improves
A year-long slump in construction activity has begun to slow as business confidence began to show small signs of recovery, latest figures show. The S&P Global purchasers’ managers index (PMI) registered 40.1 in for December, up from 39.4 in November, but still short of the 44.1 figure from October. A…
Spike in construction insolvencies heralds ‘difficult winter’
Monthly construction insolvencies have surged, according to the latest official figures, leading one analyst to warn of a “difficult winter” for the sector. Insolvency Service data, released on Friday (19 December), shows there were 360 business failures in October. This figure marked a 24 per cent rise on September’s total…