Building’s annual survey findings published later this week will show fall in positive sentiment despite margins increasing
The percentage of the largest consultants saying they have a positive view of the general economic outlook has halved year-on-year, Building’s exclusive annual survey will show on Friday.
The latest Top 150 Consultants survey findings show just 13% of consultants now have a positive view of the general economic outlook, compared to 26% in last year’s survey. Nearly a quarter of consultants (23%) now have a negative view, up from 11% a year ago.
The percentage of respondents saying they expect trading conditions to improve over the next 12 months also fell from 45% to 32%, suggesting the industry is far less optimistic than a year ago.
Despite the fall in positive sentiment, nearly two-thirds of firms (63%) this year said their operating margins are 10% or higher, up from 57% a year ago. The percentage saying their margins are moving in a positive direction also increased from 34% to 41%.
Iain Parker, director and head of London cost management at Turner & Townsend Alinea, said: “Before the whole Iran issue, I think everyone felt quite chipper about this year. Most people would have said metrics were up in terms of percentages of work secured… everything was looking pretty positive, and I think most felt that this year was going to be a step forward. And then, of course, the Middle East conflict took place, and that dampened the spirit.”
Overall annual fee income growth has levelled out at 8%, the same as last year. The industry may have avoided a third successive year of slowing growth, but the figure nonetheless remains low compared with the 11% growth seen in 2024 and 16% in 2023.
The full Top 150 Consultants tables to be published on Friday will include a ranking of the largest firms by UK fee income while there will be separate list for the Top 50 architects, project managers, engineers and surveyors.
Our exclusive analysis will show fee income growth across the industry split by sector and will also reveal which firms have grown the fastest over the past 12 months.
Our sentiment survey will reveal consultants’ biggest risks and investment priorities along with trends around recruitment and pay.
We will be publishing Top 150 findings throughout the week, including pieces looking at how firms are using artificial intelligence and at what they want to see from the Labour government.
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