{"id":164525,"date":"2026-08-07T11:32:48","date_gmt":"2026-08-07T10:32:48","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=164525"},"modified":"2026-08-07T11:32:48","modified_gmt":"2026-08-07T10:32:48","slug":"glenigan-data-shows-uk-construction-activity-remains-firmly-stuck-in-neutral","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/glenigan-data-shows-uk-construction-activity-remains-firmly-stuck-in-neutral\/164525\/","title":{"rendered":"Glenigan data shows UK construction activity remains \u201cfirmly stuck in neutral\u201d"},"content":{"rendered":"

Glenigan\u2019s August 2026 Construction Index shows UK construction activity is depressed in a tough socio-economic landscape<\/h2>\n

The index focuses on the three months to the end of July 2026<\/a>, covering all underlying UK construction projects, with a total value of \u00a3100m or less.<\/p>\n

It highlights that the UK construction sector remains firmly stuck in neutral, struggling to shift gears as a host of international and domestic socioeconomic headwinds strike it from all sides.<\/p>\n

Whilst the fall in value of underlying projects starting on site in the previous three months (-11%) was slightly less severe than figures recorded in last month\u2019s edition<\/a>, performance remains well behind last year\u2019s levels (-29%), which were lower than 2024 results.<\/p>\n

What\u2019s causing a slump in UK construction activity?<\/h3>\n

Ongoing international conflict and the political turbulence on the home front, which steadily increased over H.1 2026, are still sending shockwaves throughout the sector, with previously laid-out plans at risk or being ripped up and private investors still uneasy about releasing investment.<\/p>\n

Could a new prime minister mean activity is on the up?<\/h3>\n

Whilst residential construction remained stuck in low spirits, there were a couple of growth areas in other verticals. Office starts were the outlier, posting positive stats during the Index period and compared to the previous year.<\/p>\n

Moreover, civils work saw an impressive uptick quarter-on-quarter, implying that Spending Review money is starting to be released for infrastructure and utilities work.<\/p>\n

Glenigan\u2019s Yuliana Ivanykovych explained: \u201cTry as it might, the sector continues to be held back by external factors beyond its control, with a changing of the guard at the top of Government being the latest in a string of extraordinary events. Key barometers such as residential construction remain depressed, with little immediate sign of the dial moving before the end of the quarter.<\/p>\n

\u201cWith the new prime minister keen on hard hats over academic caps, we might yet see some movement here ahead of winter, so I imagine the whole industry will be keenly looking on to see what further policy announcements he makes over the next few weeks.<\/p>\n

\u201cHowever, to slightly temper this optimism, there remains a considerable degree of uncertainty across global markets. Tough economic conditions out of Andy Burnham\u2019s control might dent those ambitions usually achievable in normal economic circumstances.\u201d<\/p>\n

A closer look at sector specifics<\/h3>\n

Residential<\/h4>\n

It was yet another poor period for residential construction, which has been stuck in reverse for the past 12 months.<\/p>\n

Overall performance was down by a quarter (-25%) compared to the preceding three months, plummeting 46% against 2025 levels.<\/p>\n

Non-residential<\/h4>\n

According to Glenigan data, offices had a strong spell of growth. Rising 25% against the preceding three months, it was the only vertical to outstrip 2025 activity, soaring by 34% over last year\u2019s results.<\/p>\n

Industrial activity, supported by a \u00a374 million storage and distribution project in Leicestershire, increased almost a third (+30%) quarter-on-quarter, yet remained 6% lower than a year ago.<\/p>\n

Civils<\/h4>\n

Hinting that the small shoots of revival might be taking root in civil engineering, work starting on site in this vertical lifted by 34% compared to the previous three months.<\/p>\n

This relative growth can be attributed to a spike in both infrastructure and utilities activity during the Index period, with project starts up by a quarter (+24%) and by half (+51%) respectively.<\/p>\n

Projects including the \u00a374m Culham River Crossing in\u00a0\u00a0 Oxfordshire and the \u00a368m flood protection scheme in Dumfries were partly responsible for this welcome uptick in a vertical that has experienced a particularly sluggish spell over H.1 2026.<\/p>\n

Performance by region<\/h3>\n

Glenigan\u2019s data showed that regional performance was mixed, with most struggling to gain enough traction to match 2025 results.<\/p>\n

The West Midlands proved the standout performer, possibly spurred on by the \u00a353 million refurbishment and alterations services let by the West Midlands Police Authority, recording a 23% rise against the preceding three months, finishing almost a quarter (-24%) below the previous year.<\/p>\n

The East of England also recorded growth, rising 7% against the preceding three months, though remaining 22% below the previous year. The South West increased 8% quarter-on-quarter, but activity was still 45% lower than a year earlier. Yorkshire rose 13% against the preceding three months, though remained 36% below last year’s level.<\/p>\n

London experienced a relatively resilient period. Whilst project-starts declined a modest 5% quarter-on-quarter, figures held broadly in line with last year’s level, up 1% year-on-year.<\/p>\n

Elsewhere, it was a story of decline and fall. The South East dropped 27% against the preceding three months and was 46% below last year. Scotland fell 20% quarter-on-quarter and 31% year-on-year. Wales also weakened, declining 37% quarter-on-quarter and 28% compared with a year earlier.<\/p>\n

Northern Ireland, which had a comparatively stable H.1 compared to other regions, recorded one of the steepest drops, tumbling 52% against the preceding three months, to finish 22% below the previous year.<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

Glenigan data highlights that the UK construction sector remains firmly stuck in neutral, struggling to shift gears as a host of international and domestic socioeconomic headwinds strike it from all sides.<\/p>\n","protected":false},"author":37,"featured_media":164526,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[908,173386,572,173189],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-164525","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-planning-construction-news","8":"tag-economy","9":"tag-glenigan","10":"tag-housebuilding","11":"tag-productivity"},"acf":[],"yoast_head":"\nGlenigan data shows UK construction activity remains 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