Mace Consult has published its latest quarterly Market View on UK construction, highlighting that new orders increased by 9.8% in Q3 2025.
On a rolling four-quarter basis, new orders are now at their highest level since Q2 2023.
With the ongoing economic backdrop however, any renewed momentum backed by public sector investment in infrastructure is yet to inspire new work on the ground, which witnessed a small 0.2% decline in the third quarter, the first time it has slipped since Q2 2024.
In a wider context, despite this quarterly decline, new work is up 1.8% on Q3 2024, with public non-housing and private industrial both more than 20% higher than a year ago. This highlights a lack of consistency across sectors and underscores how all new work is yet to truly turn a corner.
Considering the rise in new orders, there remains a question mark over the future capacity of the market, with falls in workforce jobs and the number of construction employees, and vacancies dropping to their lowest level since the pandemic.
Taking this data into account, alongside material prices slowly ticking up, Mace Consult has left its tender prices unchanged.
New orders should boost output in 2026, with more large schemes like East West Rail and the TransPennine Upgrade coming to market in the next few years, but patience is required before construction on site gets going.
Oliver North, Director of Cost and Commercial Management, UK and Europe at Mace Consult, commented: “With growth uneven across sectors, the UK construction sector is navigating a landscape defined by a mix of renewed momentum and persistent challenges.
“Nonetheless, strengthening new orders signal opportunity, although with market capacity in mind clients should consider early engagement strategies and broaden procurement approaches to encourage interest from a wider pool of suppliers.
“As we head further into 2026, in light of the ongoing economic backdrop, it seems vital that government backed projects continue in order to support the sector.”
