Glenigan's newly-released April Construction Index paints a stark picture of an industry under sustained pressure and highlights that civils took the sharpest hit — plummeting 37% against Q4 and 34% year-on-year.

With ongoing geopolitical instability and a persistently weak economy taking their toll, the data makes for sobering reading:

• Overall on-site starts fell 17% against Q4, sitting 18% below 2025 levels
• Residential starts dropped 13% during the period and are down 30% year-on-year
• Non-residential starts dipped 5% against 2025 figures, falling 15% on the previous quarter

Civils took the sharpest hit — plummeting 37% against Q4 and and nosediving 34% against the previous year.

The April Construction Index uncovers an industry struggling to cushion the blows from ongoing international conflict and a persistently weak economy.

The Index focuses on the three months to the end of March 2026, covering all underlying projects, with a total value of £100 million or less (unless otherwise indicated), with all figures seasonally adjusted.

The report provides a detailed and comprehensive analysis of year-on-year construction data, giving built environment professionals a unique insight into sector performance over the last 12 months.

April’s Index highlights the serious challenges facing the UK construction sector, which seem to be relentless. According to Glenigan’s, the industry remains in the tight grip of decline which, if not terminal, is having a deeply damaging effect, pushing its resilience to a breaking point.

A phenomenal series of socioeconomic events and foreign policy decisions have resulted in a severely disrupted supply chain and unprecedented market volatility, the Index warns. It all comes as yet another hammer blow falling on contractors and subcontractors alike; stalling activity, flattening margins and denting profits.

Commenting on the April Index, Glenigan’s Allan Wilen said:

“Superficially, looks can be deceiving. A seasonal rise during the first quarter is masking a renewed weakening in project starts. All three main verticals: housing, non-residential buildings and civil engineering are considerably lower than a year ago and on the previous quarter on a seasonally adjusted basis.

“The sector is fighting on all fronts, home and abroad. Particularly, the Iran War will depress activity further near-term as private developers and house purchasers delay investment decisions due to fears of higher than anticipated interest rates, rising material costs, spiralling energy costs and stalled economic growth. It will have a knock-on effect on the non-residential verticals which, although many have ring-fenced funding, will no doubt be putting activity on hold to ensure they don’t waste budgets whilst rates spike.”

A closer look at the sectors, verticals and regions includes:

Sector Analysis – Civils

The bottom fell out of Civils, with work starting on-site cascading 37% against the preceding three months and falling 34% against the previous year.

Breaking it down, Infrastructure work starting on-site declined 32% against the preceding three months and declined by 37% on the previous year.

Similarly, Utilities declined 42% against the preceding three months and by 30% against the previous year.

Sector Analysis – Residential

As above, Residential experienced a particularly poor period, according to Glenigan’s figures. Project-starts declined by13% on the preceding three months and by almost a third (-30%) on 2025.

Sector Analysis – Non-Residential

According to Glenigan’s data, Offices were the only vertical to experience a growth spurt compared to the previous quarter, up 37%, to stand over two-thirds (+67%) above 2025 levels. The uptick in activity was primarily supported by the £50 million 105 Old Broad Street office development in the City of London.

Elsewhere, performance plummeted. Industrial experienced an especially lacklustre period, nosediving by 36% against the preceding three months to stand 31% below the previous year.

Regional outlook – a mixed performance

According to Glenigan’s regional data, the performance picture was inconsistent.

Once again, London was the stand out performer, experiencing a strong performance, rising 26% against the preceding three months to stand 69% up against the previous year. This was underpinned by a strong performance from the Office sector, which helped drive growth in the region.

It was more of a mixed bag for some of the regions. Northern Ireland experienced a mixed performance, dipping 2% against the preceding three months to finish 37% up against the previous year.

The North East performed similarly, dropping 27% against the preceding three months to stand 16% up compared to 2025 levels.

It was a less positive story for the remainder of the UK. Particularly in the South West where performance crashed, falling 47% against Q4 to stand 54% down against the previous year.

Not to be outdone in the disappointment stakes, the West Midlands also experienced a poor period, declining by 37% against the preceding three months to finish 39% lower than last year’s figures.

Finally, the South East performed poorly, declining 22% against the preceding three months to stand 27% down against the previous year.

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