UK construction workloads improved to a –4% net balance in Q2, up from –12%. Twelve-month expectations point to modest growth, led by infrastructure.
Alpha Score of 40 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
UK construction workloads moved closer to stable in the second quarter, with the RICS headline workloads net balance at –4%, up from –12% in the first quarter. RICS said the reading still signals that firms overall reported no increase in activity.
The net balance is compiled from the share of respondents reporting a rise in workloads minus the share reporting a fall, so a negative figure means declines outweighed gains. The quarterly survey drew 1,135 responses.
Infrastructure was the strongest segment. The energy subsector led with a net balance of +39%, ahead of water and sewerage at +23%. Private housing was the weakest, at –12%, with public housing flat. Private commercial came in at –7% and private industrial at –9%.
The survey shows a wide spread between regulated infrastructure work and private residential activity. Energy and water, both tied to regulated capital programmes, sat at the top of the table, while private housing and private commercial remained in negative territory.
Financial constraints remained the most cited obstacle to activity, named by 67% of respondents. Planning and regulation followed at 61%. Insufficient demand and materials shortages also weighed on the industry, with a quarter of respondents citing supply problems, up from 18% in the first quarter. Survey commentary pointed to lingering supply chain pressures.
Profit margin expectations did not keep pace with the workload improvement. The headline margin balance improved to –10% from –27% in the first quarter, a smaller deficit that still points to more firms expecting declines than gains. The margin balance stayed negative while the workload balance moved toward flat.
Twelve-month workload expectations turned more positive across all sectors, with the readings pointing to modest growth rather than a strong rebound. RICS said infrastructure was considered a key driver over the coming year, with the expectations net balance for the sector rising to +34%.
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