There was an overall downturn in major construction project starts during the three months to July 2025, with a 17% fall compared to 2024 levels and 20% down over the previous three month period according to Glenigan.

Poor project start results were reflected in both main contract awards and detailed planning approvals, which dramatically fell 26% and 55% against the preceding three months, respectively.

Allan Wilen, Glenigan’s Economic Director, said: “The market remains mercurial, frustrating industry effort towards wholesale recovery. Whilst many will find solace in opportunity within underlying projects, the major project work remains worryingly thin, both on the ground and in the development pipeline. The Government has made some big promises in its recent Spending Review, and rapid progress is needed to bring forward the projects that will deliver this investment, to boost economic growth and create jobs. From a business perspective, the interest rate cuts will also help ease financing of construction projects; however, its effects on a relatively weak pipeline remains to be seen.”

Despite the disappointing major project performance, the construction sector demonstrated remarkable underlying project (less than £100m in value) resilience throughout the period, with underlying construction starts achieving steady growth of 9% both quarter-on-quarter and year-on-year.