The Stace Outlook Index brings you the latest updates on the UK economy, the industry and Tender Price Index (TPI) forecasts.
Fragility Beneath Stability
The UK economy entered 2026 on a weaker footing than expected. Although GDP remained resilient through late 2025 and Q1 2026, much of that strength now looks front-loaded. The economy grew by 1.4% in 2025, but momentum faded as business confidence, household spending, and investment came under pressure from high borrowing and labour costs, persistent inflation, and geopolitical uncertainty.
In this report, we will explore the evolving economic landscape shaping the UK construction sector, examining the slowdown in growth, persistent inflationary pressures, and the challenges facing delivery, investment, and capacity alongside the outlook for tender pricing and market resilience.
