New orders fell in first quarter of 2026
Total construction new orders decreased by 10.5% in 1Q2026 compared with 4Q2025, with £10.6 billion worth of work committed to, according to the latest ONS data. On an annual basis, new orders were down by 11.9% and also fell by 14.7% when compared with the level in pre-pandemic 2019.
At a sector level, private new housing was the only sector to record an increase in new orders between 4Q2025 and 1Q2026, with a rise of 4.9%. The 33.7% decrease in public new housing orders was the steepest fall.
Private housing also recorded the most new orders in the year to 1Q2026 while infrastructure saw the greatest decline, by 36.3%.
Dr David Crosthwaite, chief economist at BCIS, said: ‘Like output data, the latest new orders results are an acute sign of weakening demand conditions across construction. It’s clear from both datasets that this is not an isolated challenge and is impacting pipelines across the board.
‘The bills confirmed in the King’s Speech were a step in the right direction, offering construction businesses some hope of the government’s continued commitment to infrastructure investment and payment reforms. However, under current conditions, it’s not certain these measures will be enough to stimulate demand across different sectors. The government says it has the right economic plan, but is it the right one for construction? Official data suggest more intervention is needed to protect what is a key growth driver for the economy.’
| Sector |
New orders in 1Q2026 compared with |
| 4Q2025 |
1Q2025 |
| Housing public |
-33.7% |
4.0% |
| Housing private |
4.9% |
17.7% |
| Infrastructure |
-11.2% |
-36.3% |
| Public – other new work |
-13.9% |
12.9% |
| Private industrial |
-2.7% |
4.0% |
| Private commercial |
-18.5% |
-23.0% |
| All new work |
-10.5% |
-11.9% |