September 2026 market update
Momentum builds across key construction sectors
The UK construction market remained challenging during August, but the latest figures revealed encouraging signs beneath the headline data. New business declined at its slowest rate for 11 months, while transport infrastructure, data centres and energy projects supported new opportunities.
Market overview
The market is adapting
The S&P Global UK Construction Purchasing Managers’ Index recorded 44.3 during August 2026, compared with 44.7 in July.
A figure below 50 represents a reduction in overall activity. The latest result reflected continued pressure led by housebuilding. Commercial construction and civil engineering recorded slower reductions than during the previous month. New business also declined at its slowest rate for 11 months, providing an early indication that demand conditions are beginning to stabilise.
Where momentum is building
Project-led sectors support demand
Several parts of the market continue to generate activity and specialist recruitment requirements.
Transport infrastructure
Transport projects supported new business during August. Continued investment across rail, roads and wider infrastructure is creating requirements for experienced tradespeople, site managers and technical professionals.
Data centres
Data centre rollouts remain an active area of the market, creating specialist demand across construction management, engineering, mechanical and electrical services and supporting trades.
Energy
Investment in energy and power infrastructure is supporting technical and construction opportunities across the country, including associated civil engineering work.
Recruitment outlook
Hiring confidence is returning
The wider UK recruitment market delivered positive signals during August. Permanent placements and temporary billings both moved into growth.
What the figures mean
These figures cover the wider UK recruitment market rather than construction alone. They still provide an encouraging signal that employer confidence is returning. Construction businesses remain selective and continue to focus on proven experience, relevant qualifications and people who will support projects from the outset.
For employers
Prepare before project demand increases
Build your next team with confidence
Saxon Chase supplies reliable construction professionals across the West Midlands and throughout the UK.
Labour & Trades | Site Management | Technical & Clerical | Plant Operators | Temporary & Permanent
Speak to Saxon Chase about your upcoming vacancies or workforce plans.
Sources: S&P Global UK Construction PMI, August 2026. KPMG and REC UK Report on Jobs, August 2026.
