Data

Market forecast: Fragile optimism emerges in the UK construction sector

By Pablo Cristi Worm 2025-07-04T06:00:00

crane

For the first time since the autumn Budget, cautious optimism is emerging. While project viability remains under pressure, there are early signs of  recovery

01 / Summary

Tender price index â–²

Aecom’s tender price index is forecast to increase by 3.0% in 2025, down from the 3.4% reported in the previous quarter, due to weaker-than-expected demand and business confidence.

ÐÇ¿Õ´«Ã½ cost index â–²

Aecom’s building cost index increased by 3.6% on the year in Q2 2025, driven by chronic skill shortages and labour cost pressures.

Consumer prices index â–²

Headline consumer price inflation accelerated to 3.4% in May, up from 3.5% in April, largely due to higher food prices and household goods, whereas transportation prices exerted downward pressure.

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