Infrastructure overview
- 72 per cent decline in against the previous year.
- 0 per cent change in main contract awards year-on-year.
- 87 per cent fall in detailed planning approvals compared to the previous year.
Civil engineering activity weakened significantly, with sharp declines in both and planning approvals. While contract awards remained broadly stable, the overall trend points to a slowdown in and pipeline development. This suggests weaker short-term output, despite some resilience in contract commitments.
The wider outlook for the sector remains underpinned by several supportive factors. The latest Spending Review is expected to drive increased investment in road and rail infrastructure from 2026/27, helping to establish a stronger base for future workloads. In addition, activity in the utilities segment is likely to pick up in the near term, supported by rising expenditure on power generation and grid upgrades linked to the UK’s net zero targets, alongside expanding capital investment programmes within the water industry.
Types of projects started
- Roads accounted for the largest share of activity despite a substantial decline.
- Harbour/Ports work also declined, contributing to overall weakness.
- Water-related provided relative stability compared with other subsectors.
Regional
- The East of England was the dominant region for project-start activity.
- London and the East Midlands experienced moderate declines for project-starts.
- The East Midlands accounted for the largest share of sector approvals.
The East of England accounted for the largest share of sector starts, rising 133 per cent against the previous year to account for 35 per cent of the total value. Work in the region totalled £802m during the period. The East Midlands (-6 per cent) and London (-5 per cent) experienced moderate declines compared to the previous year.
The East Midlands accounted for the largest share of sector approvals, with the region accounting for 31 per cent of the total value. Approvals in the region rose 31 per cent against the previous year to total £1.638bn.