Friday 30 October 2026 - Thought Leadership

Trade Credit Construction Report: October 2026

Summary

  • Housing faces the fewest planning permissions since 2012 and a new levy, while the first-time buyer scheme awaits Budget funding and final details.
  • Construction output fell 0.5% in the three months to July, and the construction purchasing managers’ index (PMI) has signalled contraction for 21 months.
  • The main constraints on UK construction are now weak orders and more expensive borrowing. Q2 new orders fell 18.1% y/y.
  • In October, ten-year gilt yields reached their highest since 2007; markets price a November interest rate rise.
  • The two-speed market has narrowed, with energy, water, transport and data centres the remaining growth areas.
  • Pipelines remaining documented but unconverted, with high number of project delays due to uncertainty around UK Government Budget and global stability
  • Construction insolvencies were 3,866 in the year to August, 17% of all cases. Creditor-led procedures are rising while voluntary liquidations fall.

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Contact details

Alice Bremner
Alice Bremner

Senior Credit Underwriter - Trade Credit

Contact details

Karen Crowley
Karen Crowley

Senior Credit Underwriter - Trade Credit

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