UK Construction Sector – Q3 Review

As we head into Q4, the construction sector remains subdued. The war in the Middle East and domestic economic uncertainty has not been curtailed and the figures are uninspiring. Subduedness aside, a lot of change is on the horizon, and we have aimed to bring you a snapshot of some of those changes in this issue.

Fresh ONS figures released in September show that total construction output fell by 0.5% in the three months to July but was preceded by growth of 1.3% and 1.5% in April and May respectively. On an annualised basis, total output was down 2.5% in July, new work declined by 5.1%, but repairs and maintenance were up by 1%. Infrastructure is the only outlier, with a 0.4% increase.

While this may sound a bit bleak, there are reasons to be positive. Early expectations indicate that construction activity will return to growth from 2027 and remain in growth mode until 2030. There are also several changes affecting the industry on the horizon.