UK construction activity shows modest improvement amid ongoing challenges

The Royal Institution of Chartered Surveyors (RICS) reported that construction workloads in the United Kingdom eased slightly in the second quarter of 2026, moving to a net balance of -4% from -12% in the first quarter, but remaining in negative territory for the fifth consecutive quarter. Infrastructure was the most resilient sector, with energy workloads up 39%, water and sewage up 23%, rail up 10% and roads up 7%, giving the overall infrastructure sector a +16% reading, its strongest in seven quarters. Private housing remained the weakest segment, posting a -12% net balance, though this was an improvement from -19% in Q1. RICS chief economist Simon Rubinsohn highlighted regulatory barriers and the challenge facing new prime minister Andy Burnham in reviving building activity.

In Wales, the RICS Construction Monitor showed overall activity remained subdued in Q2 but indicated a modest improvement, with a 3% net balance rise in overall construction activity. Private housebuilding workloads increased by 13% and "other public works" rose 12%, while private commercial and industrial sectors fell 7% and 23% respectively. Optimism grew, with 19% of respondents expecting workload increases over the next year, up from 5% in Q1. However, skills shortages worsened, with 65% reporting a shortage of quantity surveyors, 59% a shortage of bricklayers, and 36% a shortage of construction professionals. Survey respondents cited a lack of tenders and volatile world policies as additional pressures.