Overall, total construction output is forecast to grow by 1.1% in 2025 and 2.8% in 2026, which is a
significant revision down from the 1.9% in 2025 and 3.7% in 2026 in the previous forecast. Firms across
the whole construction supply chain (architects, cost consultants, main contractors, major house builders and developers, specialist subcontractors, builders merchants and distributors, as well as building materials and construction product manufacturers) report that, overall, activity has slowed since Spring, especially in private housing, infrastructure roads and commercial new build offices. Furthermore, firms reported that activity
in private housing rm&i remains subdued. Firms are increasingly reporting that homebuyer, homeowner, and investor confidence is becoming more fragile, exacerbated by uncertainty over the government’s upcoming Autumn Budget and who will bear the brunt of the impending tax rises (see Economy). However, demand in some smaller niche areas of construction continues to remain strong, such as data centres, gigafactories and energy infrastructure, as well as small, high-quality commercial refurbishment and fit-out.