{"id":523974,"date":"2025-06-30T12:30:25","date_gmt":"2025-06-30T11:30:25","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=523974"},"modified":"2025-06-30T13:27:10","modified_gmt":"2025-06-30T12:27:10","slug":"industry-set-for-cautious-recovery-as-new-orders-rise","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/consultants\/industry-set-for-cautious-recovery-as-new-orders-rise-30-06-2025\/","title":{"rendered":"Industry set for \u2018cautious recovery\u2019 as new orders rise"},"content":{"rendered":"<p>A recent growth in new orders is leading to projections that the construction sector is set to grow faster than the wider economy, according to a new industry forecast.<\/p>\n<p>In its <em>Summer 2025 UK Construction Market View<\/em> report, released this morning (30 June), consultancy Arcadis said the construction sector was set for a \u201ccautious recovery\u201d.<\/p>\n<p>It said new-build construction workload continued to increase in April and noted that the outlook for the industry was \u201cstabilising\u201d.<\/p>\n<p>Arcadis added: \u201cRecent trading updates from the UK\u2019s leading contractors point to improving performance. Most have fared better in 2024 than they did in 2023, with <a href=\"https:\/\/www.constructionnews.co.uk\/contractors\/sir-robert-mcalpine\/\">Sir Robert MacAlpine<\/a> and Willmott Dixon both returning to profit.<\/p>\n<p>\u201cInfrastructure specialists, including Morgan Sindall and Costain, are benefitting from the ramp-up in spending in energy, water and defence markets, while highlighting slower activity in highways and rail.&#8221;<\/p>\n<p>Despite a jump in new orders in the first three months of the year there is still \u201cno evidence yet of a sustained recovery in pipeline\u201d, it said.<\/p>\n<p>\u201cIt may be that the moment of greatest danger in construction workload has passed.<\/p>\n<p>\u201cWhile there are no immediate prospects for a recovery, the value of new construction opportunities looks to have stabilised, and, with public sector workload continuing to expand, programmes outlined in the Comprehensive Spending Review [CSR] offer better prospects for an investable pipeline from 2026 onwards,\u201d the report added.<\/p>\n<p>Arcadis warned that low confidence and weak growth is still holding back private markets and new infrastructure programmes are taking time to get started.<\/p>\n<p>\u201cWhile sticky inflation may slow the rate of interest rate cuts, there are early, tentative signs of recovery. Orders have regained some lost momentum, and industry sentiment is improving,\u201d it said.<\/p>\n<p>\u201cAnalysis of recent trading updates suggests that many contractors have fared better in 2024 than in the previous year, putting them in a stronger position for when the markets do eventually turn.\u201d<\/p>\n<p>It says health, education, prisons and housing are all \u201cbig winners\u201d and it said the <a href=\"https:\/\/www.constructionnews.co.uk\/civils\/future-megaprojects-to-have-separate-construction-and-design-phase-budgets-27-06-2025\/\">Infrastructure Strategy\u2019s<\/a> promise of \u00a3725bn in public capital investment over 10 years will give contractors the confidence to invest.<\/p>\n<p>The 10-year funding settlements for education, health, housing and prisons in the CSR is also \u201can important step\u201d from the government, Arcadis said.<\/p>\n<p>The CSR \u201crepresents a significant increase in levels of public investment. Above inflation growth will take place over the two-year period 2025-26 to 2026-27. Thereafter, investment<br \/>\nwill increase in line with inflation into the mid-2030s\u201d, it predicted.<\/p>\n<p>Simon Rawlinson, Arcadis&#8217; head of strategic research and insight<strong>,<\/strong> said: &#8220;While economic headwinds persist, the construction industry maintains cautious optimism for the future, thanks in part to new government investment and support.<\/p>\n<p>\u201cOur latest analysis highlights that whilst recovery is at an early stage, positive momentum in key sectors such as network infrastructure, together with spending review surety in the public sector, provides a foundation for longer-term sustained growth.&#8221;<\/p>\n<p>The report says contractors are in a better position than they were 18 months ago &#8220;both financially and strategically&#8221; with many benefitting from a selective approach to both client and project selection.<\/p>\n<p>\u201cDespite the headwinds, clients are in a better position to act, particularly the public sector with its funding allocation and volume housebuilders with growing demand. It looks as if the tide is turning,&#8221; it said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A recent growth in new orders is leading to projections that the construction sector is set to grow faster than the wider economy, according to a new industry forecast. In its Summer 2025 UK Construction Market View report, released this morning (30 June), consultancy Arcadis said the construction sector was set for a \u201ccautious recovery\u201d. &#8230;<\/p>\n","protected":false},"author":155153,"featured_media":476662,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[57172],"tags":[],"class_list":["post-523974","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-consultants"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.7 (Yoast SEO v26.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Industry set for \u2018cautious recovery\u2019 as new orders rise | Construction News<\/title>\n<meta name=\"description\" content=\"A recent growth in new orders is leading to projections that the construction sector is set to grow faster than the wider economy, according to a new\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.constructionnews.co.uk\/consultants\/industry-set-for-cautious-recovery-as-new-orders-rise-30-06-2025\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Industry set for \u2018cautious recovery\u2019 as new orders rise\" \/>\n<meta property=\"og:description\" content=\"A recent growth in new orders is leading to projections that the construction sector is set to grow faster than the wider economy, according to a new\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.constructionnews.co.uk\/consultants\/industry-set-for-cautious-recovery-as-new-orders-rise-30-06-2025\/\" \/>\n<meta property=\"og:site_name\" content=\"Construction News\" \/>\n<meta property=\"article:publisher\" 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