UK construction hit by worst run since global financial crisis
Output shrank for 12th month in a row in December, while housebuilding in deepest slump since 2020
...
“Many firms cited subdued demand and fragile client confidence. Despite a lifting of budget-related uncertainty, delayed spending decisions were still cited as contributing to weak sales pipelines at the close of the year.”
...
“Moreover, there are few reasons for businesses in the construction sector to be more cheerful. The budget’s prioritisation of higher welfare spending rather than investment will come as a disappointment to many builders, and the boost to activity from falling interest rates will be modest this year.
“Meanwhile, the chancellor’s
mansion tax will exert further downward pressure on the housing market. So, we expect only modest growth in construction sector activity in 2026, with risks tilted to the downside.”