2026.08.1306:20:42UTC+00UK Q2 Construction Orders Drop at Steeper Pace

UK construction orders fell 18.1% year-on-year in Q2 2026, a steeper decline than the 11.9% drop recorded in the previous quarter and the sharpest contraction since Q4 2023. The downturn was largely driven by an accelerated fall in orders for other work (-25.4% vs -19.0% in Q1), with private commercial orders also weakening further (-28.5% vs -23.1%).

Other infrastructure orders contracted at a slower pace (-22.5% vs -36.5%), while private industrial orders surged (33.0% vs 3.6%). This strength was more than offset by a steep decline in other new work excluding infrastructure (-45.8% vs 12.9%).

New housing orders also lost momentum, rising 7.7% after a 15.8% increase in Q1, as growth in private housing eased (12.9% vs 17.7%) and public housing orders fell back into decline (-19.2% vs 4.0%). On a quarterly basis, construction orders dropped 11.8%, matching the pace seen in Q1 and extending the downturn into a third consecutive quarter.