At a Glance
UK project starts fell sharply in Q1, with Glenigan reporting double‑digit declines across residential, non‑residential and civils work up to March 2026. (Source: BDC Magazine)
The March S&P Global UK Construction PMI stayed in contraction for a 15th month, as housebuilding and civils weakened and cost inflation hit 30‑year highs. (Source: Bricks & Bytes)
ICE’s 2026 State of the Nation report sets the context for a £725bn UK Infrastructure Strategy, flagging capacity, MMC and digital uptake as major delivery risks. (Source: ICE)
BCIS forecasts still point to 12% new work output growth between 2026 and 2031, despite the current downturn. (Source: BCIS)
The National Construction Summit 2026 in Dublin showcased wider industry themes but delivered no major UK‑specific policy or market announcements. (Source: IPAF)
Today’s update: hard data from Glenigan and the PMI confirm that the slowdown many contractors have felt on the ground is now firmly embedded in project starts and order books, even as long‑term infrastructure ambitions expand. New forecasts and the ICE’s State of the Nation report underline a widening gap between the £725bn strategic pipeline and short‑term delivery capacity and confidence. Here’s what you need to know to stay ahead today.
Ongoing Stories
Following earlier coverage of skills and delivery risks in the UK’s multi‑hundred‑billion pipeline, ICE’s State of the Nation 2026 report adds detail on how low MMC adoption and weak digital infrastructure planning could limit the government’s £725bn Infrastructure Strategy over 2025‑35. (Source: ICE)
Top 5 Headlines
💰 UK construction starts slump across all sectors in Q1 2026
Glenigan’s April 2026 Construction Index, covering projects up to £100m to March, shows work starting on site down 17% quarter‑on‑quarter and 18% year‑on‑year. Residential starts fell 13% QoQ and 30% YoY, non‑residential dropped 15% QoQ and 5% YoY, while civils/infrastructure starts saw the steepest declines at 37% QoQ and 34% YoY. Regional pain is most acute in the South West and West Midlands, with starts in the South West down 47% QoQ and 54% YoY. This points to a much thinner near‑term workload, particularly for regional contractors and supply chains exposed to smaller schemes. (Source: BDC Magazine)
💰 PMI shows construction in contraction for 15th month as costs spike
The S&P Global UK Construction PMI for March 2026 registered 45.6, remaining below the 50.0 growth threshold for the 15th consecutive month. Housebuilding was weakest at 38.2, followed by civil engineering at 44.8 and commercial work at 47.1, with new orders falling at their fastest pace since November 2025. Cost inflation hit a 30‑year high, driven by the impact of conflict in the Middle East on fuel, transport and raw material prices. For contractors and clients, this combination of shrinking demand and rising input costs will sharpen pricing pressure and risk around fixed‑price commitments. (Source: Bricks & Bytes)
🚆 ICE warns capacity gaps could derail £725bn UK Infrastructure Strategy
Returning today in a new light, ICE’s “State of the Nation: Infrastructure in 2026” assesses delivery risks against the UK Government’s 2025‑35 Infrastructure Strategy, which envisages more than £725bn of investment across housing, social infrastructure, roads, power and water. The report highlights supply chain capacity constraints, with public infrastructure spend expected to increase by around 50% versus 2015‑25, alongside low uptake of MMC and patchy digital transformation, including limited pipeline data sharing and use of digital twins. The analysis suggests that without rapid improvements in productivity and data‑driven planning, the expanded pipeline may struggle to convert into predictable work on the ground. (Source: ICE)
💰 BCIS sees 12% new work growth by 2031 despite current downturn
The latest BCIS forecasts project that total new work output will grow by 12% between 2026 and 2031. This comes against a backdrop of an accelerated downturn in construction output levels following some resilience in early 2026. The outlook implies that businesses able to ride out the current dip and invest in capability now could be well placed to capture a medium‑term recovery, particularly as public infrastructure spending ramps up. (Source: BCIS)
⚙️ National Construction Summit 2026 showcases themes but no new UK levers
The National Construction Summit 2026, held in Dublin on 15–16 April with participation from organisations including IPAF, focused on sector trends and innovation. However, there were no significant UK‑specific policy, regulatory or funding announcements emerging directly from the event. For UK stakeholders, the summit serves more as a barometer of industry thinking than an immediate driver of domestic market change. (Source: IPAF)
Also in the news
🏗️ Glenigan’s data shows especially severe drops in project starts in the South West (‑47% QoQ, ‑54% YoY) and West Midlands (‑37% QoQ, ‑39% YoY), signalling heightened regional exposure to workload gaps. (Source: BDC Magazine)
🏗️ Within the PMI data, commercial activity at 47.1 is the closest to stabilising, suggesting relative resilience in offices, industrial and retail compared with housebuilding and civils. (Source: Bricks & Bytes)
🌱 The PMI cites conflict‑driven spikes in fuel and transport costs as key contributors to record input inflation, adding further pressure to logistics‑intensive schemes. (Source: Bricks & Bytes)
⚙️ ICE’s call for better infrastructure pipeline data sharing underscores emerging opportunities for digital twin providers and consultants specialising in programme‑level analytics. (Source: ICE)
💰 BCIS notes that the recent accelerated downturn follows a period of early‑2026 resilience, reinforcing the need to reassess revenue forecasts and cashflow assumptions for the second half of the year. (Source: BCIS)
The Daily Build is written for people shaping the UK’s construction and infrastructure pipeline, from boardrooms to site offices. If this briefing helps frame your next bid, investment committee or programme review, consider forwarding it to your team.