Construction sector faces year-long decline

UK construction output has now fallen for a full year, raising concerns about the government’s ability to meet housing targets. A monthly survey by S&P Global shows activity remained below the growth threshold for a twelfth consecutive month, with December among the weakest readings since 2020. Housing construction saw some of the sharpest declines, hit by weak confidence, higher costs and tax pressures. Analysts note that uncertainty around property taxes delayed investment decisions, while job losses and a lack of new orders persisted. Although business optimism has edged up, economists expect housing starts to remain below historical levels and fall short of government targets.

City AM (08/01/2026)   Daily Mail (08/01/2026)   The Daily Telegraph (08/01/2026)   The Guardian (08/01/2026)