Glenigan, one of the construction industry’s leading insight experts, has released the June 2025 edition of its Construction Index. The index focuses on the three months to the end of May 2025, covering all underlying projects, with a total value of £100 million or less (unless otherwise indicated), with figures seasonally adjusted.
It’s a report which provides a detailed and comprehensive analysis of year-on-year construction data, giving built environment professionals a unique insight into sector performance over the last 12 months.
Continuing the upward trend of the previous editions of the Index (specifically April and May 2025), June paints an increasingly optimistic picture of an industry that is finally bouncing back following years of uncertainty.
These encouraging signals are borne out by a 25 per cent uptick in projects starting on site in the three months to the end of May, while they also held firm against 2024 figures, posting a 10 per cent increase.
Once again, performance was buoyed by the residential construction market which rocketed 49 per cent on the preceding three months to finish an impressive 45 per cent higher than last year.
While the non-residential sector fell by almost a fifth (-18 per cent) compared to 2024 numbers, it held its own in the face of still-challenging socioeconomic conditions, breaking even when performance was measured against the three months to the end of May.
The decline in civils, which has been so severe over the past few Indexes, softened. Despite dropping by a third (-33 per cent) compared to last year, it only down by a modest two per cent during the core measurement period.
Commenting on these results, Glenigan’s Economic Director, Allan Wilen, says: “The industry will welcome these results as, despite the downturn in major projects (Construction projects valued at >£100m) recently shown in the May Review, the underlying market, which represents the majority of work across the sector, appears to be on the up. Perhaps a higher degree of ‘relatively’ good news business stories coming from Downing Street is giving many investors that boost they so desperately needed to get building. Certainly, if the very strong figures in the residential vertical are anything to go by, we’ll likely see the curve continue to rise into H.2 2025.
“Of course, the much-anticipate Spending Review is revealed this month and should have an interesting effect on industry confidence. Coming out just shy of our own Spring/Summer Forecast these two documents should offer a fascinating indicator of the future direction of activity across UK construction.”
Sector Analysis – Residential
Residential construction was the standout performer in the June Index, where starts increased 49 per cent on the preceding three months and rose 45 per cent against 2024 figures.
Drilling deeper, private housing construction-starts increased by 55 per cent against the preceding three months, experiencing a 56 per cent increase on the year before. Likewise, Social Housing increased 29 per cent against the preceding three months to stand 13 per cent up on the previous year.
Sector Analysis – Non-Residential
Results were slightly less spectacular in non-residential verticals.
Offices experienced a mixed period, rising eight per cent against the preceding three months but remaining six per cent below the previous year. Hotel & Leisure followed a similar trend, rising 10 per cent against the preceding three months but remaining four per cent below the previous year.
Retail declined 14 per cent against the preceding three months to stand 26 per cent down against the previous year. Education also fared poorly, decreasing 10 per cent against the preceding three months and decreasing 52 per cent against the previous year.
Community and amenity project-starts declined six per cent against the preceding three months and the previous year. Health followed a similar trend, declining 15 per cent against the preceding three months to stand 11 per cent lower than the previous year.
Civils work starting on-site declined two per cent against the preceding three months and decreased 33 per cent against the previous year. Breaking this down further, infrastructure work starting on-site decreased one per cent against the preceding three months and decreased by 28 per cent on the previous year. Utilities starts also experienced poor performance, declining two per cent against the preceding three months to stand 38 per cent down against the previous year.
Regional Outlook
The South West experienced a strong performance, increasing 27 per cent against the preceding three months to stand 24 per cent up against the previous year. The North West performed similarly, rising 58 per cent against the preceding three months and rising one per cent against the previous year.
The South East experienced a mixed results, rising 30 per cent against the preceding three months to stand two per cent down against the previous year. The capital rose 30 per cent against the preceding three months to stand two per cent up against the previous year.
The North East experienced a strong performance, increasing 21 per cent against the preceding three months to stand 10 per cent up against the previous year. The West Midlands increased 34 per cent against the preceding three months to stand 11 per cent up against the previous year.
