Wet winter and nervous clients hit construction workload

Complete building output is estimated to have fallen by 2% over the three-month interval, reinforcing considerations that the business entered 2026 on the again foot.

The downturn was pushed primarily by a drop in new work, which fell 3.2% over the interval, whereas restore and upkeep exercise edged down by 0.4%.

Poor non-public home constructing exercise proved the largest drag on the sector, with output dropping 6.3% throughout the three months.

General, seven of the 9 building sectors recorded declines, underlining the broad weak spot in workload as builders and purchasers delayed choices amid unsure market situations.

Personal industrial was the one new work sector to report progress (2.2%) with the tough to measure non-public RMI sector additionally displaying an uplift.

Business sources stated a run of heavy rainfall at first of the yr has compounded already fragile confidence, disrupting web site productiveness and delaying programmes on many initiatives.

Regardless of the gloomy three-month image, January itself confirmed a marginal enchancment.

Month-to-month building output edged up by 0.2% following three consecutive month-to-month declines.

The small rise got here completely from restore and upkeep work, which elevated 3.3% in the course of the month as contractors centered on indoor works and upkeep jobs much less affected by poor climate.

New work exercise continued to fall in January, slipping 2%, suggesting builders stay cautious about beginning main schemes.

The figures spotlight the tough situations dealing with contractors at first of 2026, with home constructing notably weak and many purchasers holding again new initiatives whereas ready for clearer indicators of financial restoration.

Clive Docwra, managing director of property and building consultancy McBains, stated: “It’s clear from immediately’s figures that investor urge for food for main initiatives stays weak, with new work falling by two per cent in January, and the longer-term image over the three months to January displaying the same fall in output.

“Notably regarding is the work in seven in 9 work sectors going backwards, and particularly the 6.3% fall in new housing, which is without doubt one of the sharpest drops lately.

“The fear, after all, is that together with an already fragile financial local weather, the Center East disaster will affect building by driving up materials prices and disrupting international provide chains, so the outlook for 2026 is already wanting bleaker than anticipated.”