{"id":160759,"date":"2026-04-08T08:00:00","date_gmt":"2026-04-08T07:00:00","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=160759"},"modified":"2026-04-07T20:34:59","modified_gmt":"2026-04-07T19:34:59","slug":"uk-construction-activity-slumps-economic-geopolitical-pressures-continue","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/uk-construction-activity-slumps-economic-geopolitical-pressures-continue\/160759\/","title":{"rendered":"UK construction activity slumps as economic and geopolitical pressures continue"},"content":{"rendered":"

Glenigan\u2019s<\/a> April Construction Index shows a sharp drop in project starts across all sectors, driven by global conflict, economic uncertainty, and falling investor confidence<\/h2>\n

Covering the three months to the end of March 2026, the seasonally adjusted data show that overall construction activity continues to decline<\/a>, with on-site work starting down 17% compared to the previous quarter and 18% below 2025 levels.<\/p>\n

Residential sector hit hardest<\/h3>\n

Project starts in the residential sector declined 13% on the quarter and dropped 30% compared to 2025.<\/p>\n

Private housing activity fell 9% quarter-on-quarter and 34% year-on-year, while social housing starts decreased by 24% and 16% respectively.<\/p>\n

Uncertainty around planning policy,<\/a> alongside subdued buyer demand and cautious investors, continues to suppress development activity.<\/p>\n

Mixed performance in non-residential construction<\/h3>\n

Office developments emerged as a notable bright spot, rising 37% compared to the previous quarter and standing 67% higher than a year earlier, supported in part by major schemes such as the 105 Old Broad Street project in the City of London.<\/p>\n

Retail also recorded modest quarterly growth of 12%, though it remains 17% below 2025 levels.<\/p>\n

Elsewhere, performance weakened significantly:<\/p>\n