Market forecast: Construction sector hangs in the balance

By Pablo Cristi Worm 2025-10-08T06:00:00

Source: Shutterstock

Global events and inflationary turmoil have heightened sensitivity to risk and created nervousness ahead of the Budget, affecting private sector decision-making. Project viability remains tight

01 / Summary

Tender price index ▲

Aecom’s tender price index is forecast to have increased by 3.0% over the whole of 2025, supported by slow but consistent growth in the industry.

Building cost index ▲

Aecom’s building cost index increased by 3.1% in the year to Q3 2025, driven by sticky inflation and labour cost pressures.

Consumer prices index ▲

Consumer price inflation rose at a steady rate of 3.8% in August for the second month in a row, while services inflation – a useful indicator of price trends in more discretionary spending – slowed to 4.7% in August, down from 5.0% in July.

This is PREMIUM content, available to subscribers only

You are not currently logged in. Subscribers may LOGIN here.

SUBSCRIBE to access this story

SUBSCRIBE for UNLIMITED access to news and premium content

A subscription will provide access to the latest industry news, expert analysis & comment from industry leaders, data and research - including our popular annual league tables. You will receive:

Print/digital issues delivered to your door/inbox
Unlimited access to building.co.uk including our archive
Print/digital supplements
Newsletters - unlimited access to the stories behind the headlines

Subscribe now

Get access to premium content subscribe today