Insights

07.08.25

Global Construction Sentiment Stalls - What It Means for UK Contractors

Author: Bisola Orimalade

The latest RICS Global Construction Monitor for Q2 2025 suggests the industry is entering a period of stalled momentum. With the Construction Sentiment Index (CSI) falling to +5, the lowest since 2022, the global picture is one of caution, divergence, and increasing headwinds.

While there are pockets of growth and sector-specific optimism, the broader message is clear: construction workloads are flatlining, and pressure is mounting.

A Mixed Global Outlook

Across the board, several regions are faring better than others:

• Europe showed signs of modest improvement, with Spain and Germany leading the way.
• The Middle East and India continue to report strong workload growth, particularly in infrastructure.
• Asia-Pacific, by contrast, has taken a downturn driven primarily by ongoing slowdowns in China.




Closer to home, the UK’s CSI sits at just +3, signalling little to no change in current sentiment. This reflects the cautious mood many of us in the industry have already observed.




Three Key Findings That Affect UK Construction Firms

1. Infrastructure Is Still Leading

While private residential and commercial work remain muted in many countries, infrastructure stands out as the most resilient sector. Energy, transport and ICT projects are sustaining workloads and expected to grow over the next 12 months.

For UK firms, this reinforces the value of public sector readiness being pre-qualified, compliant, and ready to support government-led projects.




2. Financial Constraints Are Tightening

65% of respondents cited financial constraints as the main barrier to activity. Access to credit is worsening, particularly for smaller firms. Material cost pressures, after easing in 2023, are beginning to rise again.

This will likely continue to squeeze margins, delay procurement decisions, and create added pressure on project viability.




3. Skilled Labour Remains Scarce

Over half of global respondents said skilled labour is difficult to find, particularly in trades, project managers, and quantity surveyors. This is already being felt across the UK, and with large projects coming online, competition will only increase.

For firms like ours, this underlines the importance of investing in people through training, apprenticeships, and better retention strategies.




Looking to secure infrastructure work in a competitive market? We help clients prepare bids, navigate pre-qualification, and stay delivery-ready.

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What This Means for Queensbury Construction Group

We recognise the pressures the report highlights and we’re already adapting to meet them.

• We’re aligning more closely with infrastructure opportunities where demand remains steady, and planning cycles are clearer.
• We’re working with clients early in the process to review budgets, lead times and procurement options, helping reduce cost risks before construction begins.
• We continue to invest in our team because, without a reliable, skilled workforce, no project can succeed.

We’re aligning more closely with infrastructure opportunities where demand remains steady, and planning cycles are clearer.

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What This Means for Queensbury Construction Group

We recognise the pressures the report highlights and we’re already adapting to meet them.

• We’re aligning more closely with infrastructure opportunities where demand remains steady, and planning cycles are clearer.
• We’re working with clients early in the process to review budgets, lead times and procurement options, helping reduce cost risks before construction begins.
• We continue to invest in our team because, without a reliable, skilled workforce, no project can succeed.

A Note on the Report Itself

While the RICS survey gives valuable insight into macro trends, the UK data could benefit from more regional granularity. The Southeast is not the same as the Northwest, and pressures vary widely by local authority, sector, and project type.

Additionally, while “financial constraint” is flagged as the top issue, the report doesn’t explore what’s behind it: whether that’s delayed payments, lending restrictions, or government funding uncertainty. A deeper look here would add more value to UK-based firms navigating real-world challenges.




Final Word

Construction might be slowing globally, but opportunities still exist for well-prepared, forward-thinking firms. At Queensbury Construction Group, we remain committed to delivering quality work, maintaining strong relationships, and adapting to the market.

If you’re planning a project and looking for a construction partner that takes a practical, transparent approach, get in touch. We’re ready to help you move forward.




Interested in Working Together?

At Queensbury Construction Group, we support clients from initial planning through to project completion, offering clear advice, practical solutions, and reliable delivery. Whether you’re in the early stages of scoping a build or looking for a trusted partner to navigate complex construction challenges, we’d be happy to hear from you.




Book a consultation to explore how we can help.




Source: Q2 2025 RICS Global Construction Monitor, published July 2025. Read the full report here.

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