It has been a year of resilience and changing strategies for the construction industry.

The Coreus monthly market view looks at the varying market, from changes in restrictions, labour and capacity, providing insight into this everchanging market.

The UK construction sector in Q2 2026 is experiencing divergent market conditions, characterised by elevated input cost inflation on one side and demand-side reduction on the other.

While trade restrictions, energy market volatility, and regulatory changes drive up material and transport costs, falling output and continued delayed project start dates are creating space capacity within the market. This forces main contractors and subcontractors to compete aggressively for work, frequently absorbing cost increases into their margins rather than passing them on to clients.