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The survey received 1,135 responses this quarter. The survey's net balance data reflects the proportion of respondents reporting either a rise or a fall in a specified area and does not quantify the scale of change in the underlying variable itself. A reading of –100 indicates that no respondents are reporting increases (or no change), while a reading of 100 indicates the opposite.

The headline workloads indicator, which captures respondents’ assessment of activity across the wider construction industry, returned a net balance of –4% in 2Q2026. This was up from –12% in the previous quarter but still indicates that overall, firms reported no increase in workloads.

Infrastructure was the strongest-performing sector of the UK construction market, with workload improvements recorded across most subsectors compared with 1Q2026. The energy subsector led the way with a net balance of +39%, followed by water and sewerage at +23%.

Conversely, private housing was the weakest-performing sector, posting a net balance of –12%. Public housing workloads were reportedly flat, while private commercial and private industrial recorded readings of –7% and –9% respectively.

Encouragingly, respondents reported less financial market stress than in the first quarter. However, responses suggest the overall backdrop remains challenging.

Financial constraints remain the most widely cited obstacle to activity, referenced by 67% of participants. This was followed by planning and regulation, cited by 61%.

Insufficient demand also continues to be a significant constraint on activity alongside materials shortages which were referenced by one-quarter of respondents. This was up from 18% in 1Q2026 with commentary pointing to lingering supply chain pressures.

Expectations for workloads over the next 12 months were more positive in the second quarter. This was evident across all sectors, although the readings point to modest growth.

Infrastructure is considered to be a key driver over the coming year, with the 12-month expectations net balance for the sector rising to +34%.

Profit margin expectations were less positive. The headline reading remained negative at –10%, despite improving from –27% in 1Q2026.

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