In the three-month period May to July the value of construction project starts in the UK fell by 20% compared to the previous three months and by 17% compared with 2024 levels.
Not only are project starts in decline, so are contract awards, indicating that starts will continue to decline.
According to Glenigan, the value of main contract awards declined by 26% in the May-July period compared to the preceding three month, and by 39% compared to last year.
Even worse news: detailed planning approvals fell by 55% when measured against the previous three months, and 36% down on 2024 figures.
While there鈥檚 reasonable activity in the sub-拢100m category of construction contracts, it is the major projects that have stalled, as the graphs below indicate.
Glenigan economic director Allan Wilen said: 鈥淭he market remains mercurial, frustrating industry effort towards wholesale recovery. Whilst many will find solace in opportunity within underlying projects, the major project work remains worryingly thin, both on the ground and in the development pipeline. The government has made some big promises in its recent Spending Review, and rapid progress is needed to bring forward the projects that will deliver this investment, to boost economic growth and create jobs. From a business perspective, the interest rate cuts will also help ease financing of construction projects; however, its effects on a relatively weak pipeline remains to be seen.鈥�
With all the contradictory reports of UK construction鈥檚 economic health at the moment, Wilen insisted that Glenigan has it more right than anyone else. 鈥�
鈥淲hilst there are a number of qualitative, sentiment-based polls available, these are often based on short time spans, month-by-month, and small samples, usually around 100 respondents,鈥� he said, presumably referring to the monthly Purchasing Managers Index (PMI).
鈥淕lenigan鈥檚 data, on the other hand, is quantitative and drawn from official sources such as planning applications. The analysis is conducted on a quarterly basis and year-on-year. This offers an unbiased, fact-founded basis on which to consider performance and form conclusions. Ultimately, it aims to offer as precise a picture as possible for the sector, so the market can better plan for more high-value decisions.鈥�
That said, the PMI has been painting an atrocious picture all year too, indicating activity declining every month so far this year.
The Office for National Statistics, however, last week reported that construction output in Great Britain grew by 1.2% in the second quarter (April to June) of 2025 compared with the first quarter, although new orders fell by 8.3%.
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