Glenigan, one of the construction industry’s leading insight and intelligence experts, has released the August 2026 edition of its Construction Review.
The August Review focuses on the three months to the end of July 2026, covering all major (>£100m) and underlying (<£100m) projects, with all underlying figures seasonally adjusted.
It’s a report providing a detailed and comprehensive analysis of year-on-year construction data, giving built environment professionals a unique insight into sector performance over the past year.
Glenigan’s August Construction Review reveals a few rays of sunshine poking through an otherwise overcast industry landscape. It will provide some much-needed optimism to a sector that has been battling an extraordinary set of headwinds since the start of the year.
A massive jump in Main Contract Awards, which rose 17% against the preceding three months, and soared a staggering 169% compared to 2025, is perhaps the strongest indicator that market confidence is returning. This can, in part be attributed to an activity spike in major projects, particularly in the healthcare, where various schemes in the New Hospital Programme reached the contract awarded stage. This includes the Leighton Hospital scheme, the Frimley Park Hospital as well as various others.
Similarly, if somewhat more modestly, Detailed Planning Approvals picked up by 10% during the Review period and, despite dipping 3% year-on-year, this modest rise compared to the previous month indicates the pipeline is gradually refilling. It certainly offers a tentative sign that recovery, if not immediate, is on the horizon, echoing Glenigan’s own Forecast prediction of an 11% sector-wide performance increase in 2027.
The refreshingly positive stats in the August Review can be largely credited to substantial gains in a number of commercial verticals, particularly Hotel & Leisure, as well as an acceleration of activity in both public sector and civils.
However, before contractors and subcontractors get dazzled by these strong figures, it appears that intent is yet to properly translate into activity. Project starts are still stubbornly stagnant as the appetite to commit shovel to soil remains subdued, against a backdrop of lukewarm investor confidence and renewed uncertainty around public spending. This resulted in a 7% drop against the previous three months. Yet, whilst activity remains low, there are signals that a long period of decline is starting to bottom out, with levels breaking even (0%) compared to 2025.
Looking at the results, Allan Wilen, Glenigan’s Economics Director, says, “There are plenty of reasons for readers to be cheerful when going through the August Review, especially following such a tumultuous and unpredictable six-months. Whilst a degree of uncertainty persists, labour and material costs are stabilising. Industry prospects appear to be turning a corner, but, before we get too excited, these green shoots are fragile and, as we’ve seen before, could wither away on the merest market change.”
He continues, “the construction supply chain should stay mindful that the recovery will be shaped by wider economic conditions, investor confidence and public sector spending priorities. Remember, in spite of the excellent Main Contract Awards and Planning Approval figures, conversions into actual starts remains the litmus test of the sector’s performance over the back end of the year.”
