Construction confidence boost as new orders see 16% surge

Construction output also saw a 1.0 per cent overall increase in Q3, according to the latest UK Construction Market Outlook Report by cost and project management consultant Currie & Brown.

This follows a recent upward trend in construction activity which expanded at its fastest pace in 26 months driven by the sharp rise in new orders, according to the S&P Global UK Construction PMI data for October.

However, this spike in activity dropped slightly in November, revealing a potential dip in confidence across the sector.

The Currie & Brown report also highlighted the impact of Chancellor Rachel Reeves’ Autumn Budget

Reeves promised to invest £100 billion in capital projects over the next five years which will provide an additional boost to the overall project pipeline. 

The report specifically highlights:

• Additional £4 billion earmarked for education, including £1.4 billion for the school rebuilding programme.
• £500 million in new funding for the Affordable Homes Programme, bringing total investment in housing supply to over £5 billion.

Currie & Brown cites the current macroeconomic context – lower inflation at 2.3 per cent, and the Base Rate cut to 4.75 per cent – as adding to the certainty for the industry in the short- to medium-term.

These findings come amid uncertainty in the sector over recent years, which has seen ongoing volatility in the supply chain and labour market.

The report does, however, highlight areas of concern; including the lack of clarity from central government about supply and resource capacity in the industry as well as the tax-raising measures in the recent Budget.

Nick Gray, Chief Operating Officer of Currie & Brown UK & Europe said: “The construction industry looks set for a period of further growth, driven by bold investment from the government and stabilising economic conditions in the UK. 

“At the same time, it’s encouraging to see the industry’s focus on innovation through the adoption of Modern Methods of construction, better data and new technology. But we cannot afford to be complacent. 

“Against a still unpredictable geopolitical backdrop, firms must remain agile.

“Curation of advances in digital technologies like AI to enhance project efficiency and adopting two-stage tendering will be crucial to building and maintaining resilience as the UK’s economic and political landscape unfolds.”

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