The July 2026 edition of Glenigan’s construction review shows that the industry is on the road to recovery but is struggling to establish a stable footing
The July edition of the Glenigan construction review focuses on the three months to the end of June 2026, covering all major and underlying projects, with all underlying figures seasonally adjusted.
According to the data, the sector is plagued by socioeconomic headwinds from all sides.
Allan Wilen, economics director at Glenigan, said: “A raft of different factors, including interest rate movements, construction cost inflation and government infrastructure investment, will be critical in determining whether the stronger pipeline translates into sustainable growth in project activity.”
Major contract awards dip by 6%
The Glenigan construction review indicated a decline in major contract awards in Q2, down 6% from last year.
This indicates a distinct lack of investor appetite to get things moving any time soon, hampering progress, particularly in commercial sectors, which posted some of the biggest declines in this type of activity.
Uptake in planning approvals signals gentle recovery
However, a solid uptick in detailed planning approvals (+13 % vs the preceding three months) offers a welcome sign that, even if the project pipeline is not flooded with opportunities, a gently flowing stream is starting to reassert itself.
However, there’s still considerable ground to make up, with these results falling short of 2025 levels (-20%).
Could a new Prime Minister take the industry in a different direction?
Wilen explained: “Whilst the next two quarters are going to see little movement of the dial, we still predict, according to our 2026 – 2028 Forecast, that recovery will be seen in 2027.
“However, with the promise of a new Prime Minister going into the second half of 2026, we might see the situation change further, as the new administration looks to establish its own identity.”
He continued: “The big question on everyone’s lips now will be whether they stick to the parameters of the Manifesto and spending commitments made in 2024 or decide to plot their own political course and economic direction. The industry will watch developments with keen anticipation over the coming weeks, deciding how to re-strategise to seize any opportunities that arise.”
Glenigan construction review indicates long-term plans for construction will aid recovery
The Glenigan construction review asserts that the longer-term outlook remains positive.
The government’s 10-Year Infrastructure Strategy sets out a £718 billion investment pipeline across 734 projects to 2034, providing a substantial, long-term workload foundation for the sector.
Anticipated investment in electricity networks, renewable energy infrastructure and major transport schemes is expected to sustain momentum, making civils one of the most closely watched sectors heading into 2027.
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