UK construction has recorded a strong uplift in new orders, but the momentum has yet to feed through to activity on site.
New orders increased by 9.8 per cent in the third quarter of 2025, taking the rolling four-quarter total to its highest level since the second quarter of 2023.
Despite this, onsite activity slipped by 0.2 per cent during the quarter, marking the first decline since the second quarter of 2024 amid a challenging economic backdrop.
Revealed in its latest quarterly Market View, Mace Consult said new work was still 1.8 per cent higher than a year earlier, with public non-housing and private industrial sectors both posting growth of more than 20 per cent, highlighting uneven performance across the market.
The consultancy also flagged concerns over future capacity, with construction employment and vacancies falling to their lowest levels since the pandemic.
With material prices edging up, tender prices were left unchanged.
Stronger order books are expected to support output growth from 2026 from projects including East West Rail and the TransPennine Upgrade, although the report suggests patience will be required before increased activity is seen on site.
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Oliver North, director of cost and commercial management, UK and Europe at Mace Consult, said: “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.”
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