Published: August 21, 2025
A cautiously upbeat Q2 has been quickly clouded by sharply contracting activity in July. While housing and infrastructure remain more stable, wider market confidence has weakened. Recent updates from key organisations—including the ONS, MPA, CPA, and S&P Global—paint a mixed picture as the industry looks toward the final quarter of 2025.
Output Grows in Q2 — But Confidence Slumps
According to the Office for National Statistics (ONS), UK construction output rose by 1.2% in Q2 2025, with new work up 0.9% and repair and maintenance up 1.5%.
But that short-term growth reversed quickly — July’s S&P Global PMI dropped to 44.3, marking the steepest monthly contraction since May 2020.
Housebuilding and infrastructure saw the most pronounced declines, while commercial activity was less affected.
MPA: Mineral Products Sector Hits New Lows
The Mineral Products Association (MPA) has warned of a “worrying collapse in confidence” across the heavy-side construction materials sector.
In Q2 2025, sales volumes of ready-mixed concrete fell 7.3%, with aggregates and asphalt also down — indicating a sharp slowdown in site activity and prep work for major infrastructure.
The MPA said this downturn reflects not only slower demand but also delays in infrastructure delivery, planning hold-ups, and reduced public sector spending.
CPA Forecasts: Infrastructure and Housing to Drive Recovery
The Construction Products Association (CPA) released its Summer 2025 Forecast, projecting overall construction growth of 1.9% this year, rising to 3.7% in 2026.
CPA expects housing RMI and infrastructure to rebound first, especially where energy efficiency and public transport investments are involved. Private housebuilding will recover more slowly, affected by high borrowing costs and mortgage constraints.
Material Supply: Bricks Rising, Blocks Declining
GOV.UK materials data for June 2025 shows a 12.8% increase in brick deliveries, but a 4.6% decline in concrete block deliveries year-on-year.
This reflects strong output in residential schemes, but a slowdown in infrastructure and industrial developments, aligning with MPA’s observations on concrete and aggregate demand.
Wider Economy: Construction Boosts UK GDP
The UK economy grew by 0.3% in Q2, thanks in part to the 1.2% expansion in construction, according to The Guardian. However, global uncertainty — including ongoing tariff disputes — is weighing on private investment and client confidence.
Emerging Issues: Labour & Planning Still Drag
The Bank of England’s Agents’ Summary highlighted persistent labour shortages, especially for skilled trades, and continued delays in the planning system — both factors constraining the pace of new project starts and completions.
This tallies with the CPA’s view that delivery, not demand, is the bottleneck for much of the sector.
Final Thoughts from Leading Edge
Construction remains a crucial support to UK GDP, but a poor July PMI and mineral supply weakness suggest that growth will be uneven for the remainder of 2025.
While residential projects and energy-efficient retrofits are progressing, larger infrastructure work is stalling under funding and supply chain pressure.
At Leading Edge, we help clients make sense of these dynamics—supporting smarter targeting, product positioning, and demand forecasting across all major building sectors.
👉 Talk to us if you’d like help translating market insight into action.
Sources: ONS, S&P Global, MPA, CPA, GOV.UK, The Guardian, Bank of England
Written by the Leading Edge team – August 21, 2025
