The March ’26 edition of Glenigan’s Construction Index predicts slow-to-no growth in most verticals. This is against a backdrop of international conflicts that may further challenge the UK’s construction sector.
The March ’26 Glenigan Index seems to paint a decidedly bleak picture of an industry that may be struggling to overcome the general economic malaise. The crisis has gripped the UK since the Covid-19 pandemic.
The index focuses on the 3 months to the end of February ’26. The index covers all underlying projects. A total value of USD133m (£100m) or less (unless otherwise indicated). All figures are seasonally adjusted.
The value of work commencing on-site during the 3 months to February ’26 declined by 10%. It stubbornly remained at 15% below ’25 levels. Such disappointing results could be attributed to a number of factors.
A sluggish market may be stymied by international conflicts
The sector continues to be dragged down further by the residential vertical. This is occurring while non-residential construction has witnessed a modest increase in performance. There was not enough momentum to reverse the overall decline. With markets remaining volatile, low consumer confidence, and lukewarm private investment, it seems unlikely that an overall recovery will be achieved in the first half of the year.
Besides, recent events are likely to have a significant impact on activities over the next few months. The Middle East’s escalating conflict threatens disruption of supply chains. Such disruptions would likely affect the ability of contractors to access essential construction materials. It will also have a painful operational impact as fuel and energy prices surge over the next quarter. This exerts pressure on already tight margins.
The Index reflects a high degree of uncertainty that is restricting collective appetites. This is initiating Britain to build again until the industry has a clearer picture of Britain’s short- and long-term fiscal future.
Glenigan’s economic director, Allan Wilen, commenting on the relatively grim outlook for March, indicated that in recent months, non-residential construction has been a bright spot. It has been buoyed by a growth in office, education and community besides amenity work. Its growth has been overshadowed by declines reflected elsewhere.
