The United Kingdom’s construction sector remained in contraction at the start of 2026, though the pace of decline eased marginally. Year-over-year construction output in January 2026 fell by 0.2%, an improvement compared with the 0.3% annual drop recorded in December 2025.
The data, updated on 13 March 2026, show that while the industry is still under pressure, the year-on-year comparison points to a modest stabilisation rather than a deepening downturn. The January figure reflects how output in that month compares with January a year earlier, whereas the December reading captured the change versus December of the previous year.
Investors and analysts are likely to see the softer decline as a tentative sign that the sector’s weakness may be bottoming out, although construction activity remains below its level a year ago on this latest read.
