Firm says infrastructure and industrial work has helped pull sector out of reverse
The UK construction sector grew by around 1.1% in 2025 after two years of contraction, PwC has revealed.
The financial services firm’s latest Construction and Housebuilding Outlook report said the recovery has been underpinned by public investment and industrial strategy priorities in public non-residential and infrastructure projects.
Public non-residential construction grew by over 18% in 2025, attributed primarily to government‑funded health and education schemes.
Meanwhile, industrial construction output rose by around 19% to approximately £11bn as energy transition, defence and advanced manufacturing saw sustained investment.
But the report highlighted an “uneven recovery” across regions with places like Cambridge, London and Oxford benefitting from new life sciences clusters, while other parts of the country that were more reliant on private housing, offices and retail “continue to recover more slowly”.
Sam Edwards, director of industrials and services at PwC, said: “Looking ahead, infrastructure investments in energy and water are anticipated to play a significant role in supporting broader economic goals [across the 2026-2028 period].”
PwC warned that “ongoing economic and geopolitical uncertainty will continue to shape costs, supply chains and delivery dynamics across the sector”.
No comments yet