Construction activity in early 2026 finds itself in a similar position to how it ended 2025, with subdued activity in some major construction sectors offset by growth in key niche areas.
Last year was challenging for many firms across the construction supply chain, and this year is likely to be equally challenging. In addition, as in 2025, there remains a vast array of uncertainties and risks in construction that could have a major impact on near-term forecasts for each construction sector and sub-sector.
Overall, construction output is forecast to rise by only 1.7% in 2026, primarily driven by new work. However, given the major concerns that the CPA and other forecasters have about the official data on construction output, whether the Office for National Statistics (ONS) data shows this is a different matter