{
  "query": "UK construction cost inflation 2024-2026 steel industry benchmarks",
  "raw_results": [
    {
      "url": "https://coremetsteel.com/news-insights/uk-steel-price-forecast-2025-2026/",
      "title": "UK Steel Price Forecast 2025–2026 | Market Outlook",
      "content": "##### Steel Market Snapshot (2024 Recap)\n\nIn 2024, UK steel prices saw moderate increases as energy costs settled and imports from Turkey and Asia increased competitiveness. Overall annual movement:\n\n Merchant Bars: +4% to +7%\n Coil Sheets: +5% to +8%\n Structural Steel: Stable to +3%\n Rebar: +2% to +5%\n\nThis forms the baseline for 2025–2026 expectations.\n\n##### Price Outlook for 2025\n\nUK steel prices are expected to rise gradually due to stronger construction demand, global scrap trends, and steady energy costs.\n\n Merchant Bars: +3% to +6%\n Coil Sheets: +2% to +7%\n Structural Steel: Stable to +4%\n Rebar: +2% to +5%\n\nImport pressure — especially from Turkey and India — will help prevent sharp increases, but procurement teams should still expect gradual quarterly rises. [...] ##### Key Factors Shaping Prices\n\n Energy Costs: Still a major influence on mill production costs.\n Scrap Steel Prices: Particularly impactful for merchant bars and rebar.\n Import Competition: Turkish and Asian mills continue to offer competitive pricing.\n UK Construction Demand: Infrastructure and housing projects will support steady consumption.\n Logistics: Reduced freight rates in 2025–2026 improve import affordability.\n\n##### Practical Advice for Steel Buyers [...] The UK steel price forecast for 2025–2026 is a key concern for builders and fabricators as the market shifts after recent volatility. This overview explains the expected price trends and what buyers should prepare for. Steel prices in the UK are entering a period of moderate but steady movement, making 2025–2026 an important planning window for builders, fabricators, and procurement teams. After a volatile 2023–2024 shaped by energy fluctuations and supply chain challenges, the market is now stabilising — but several key drivers will continue to influence costs over the next 24 months.\n\nWorker in Factory\n\nSteel products UK – industrial pipes manufactured to British standards\n\nKey UK Steel Price Trends and Market Outlook for 2025–2026\n\n##### Steel Market Snapshot (2024 Recap)",
      "score": 0.76300776,
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    },
    {
      "url": "https://publications.turnerandtownsend.com/global-construction-market-intelligence-2025/global-construction-cost-trends",
      "title": "Global construction cost trends - GCMI 2025",
      "content": "In developed regions, construction inflation rates continued normalising in 2024, as the effects of restrictive interest rates and softening demand filtered through the economy. The UK recorded an average increase of 3.0 percent, while Europe experienced average inflation of 2.9 percent. North America reported 3.6 percent, whereas Australia and New Zealand experienced a higher rate of 4.7 percent for the year, largely driven by a newly negotiated enterprise agreement introducing a payrise for construction labour, though this still marks an improvement compared to previous years. These figures indicate a return to escalation rates more aligned with those seen prior to the pandemic, suggesting greater stability in material pricing and project-related costs. [...] In the UK and North America, construction cost inflation is anticipated to remain steady at 3.5 percent and 3.8 percent, respectively. However, at the time of the survey, uncertainties persist, particularly in the US, where policy changes could have significant implications for construction. Factors such as fluctuations in plant and material costs and deportation policies affecting labour availability are expected to be key considerations influencing future trends.\n\nGiven the potential for rapid market shifts, ongoing monitoring of developments is advised to ensure timely adaptation to changing conditions.\n\n#### GLOBAL\n\n## Construction input costs and global supply trends\n\n### Labour [...] Image 28\n\nConstruction cost growth continues to show signs of easing at the global level. On average, construction cost inflation is projected to settle at 3.9 percent globally in 2025, before rising marginally to 4 percent in 2026, though regional disparities persist.",
      "score": 0.7348247,
      "raw_content": null
    },
    {
      "url": "https://www.arcadis.com/en-gb/insights/perspectives/europe/united-kingdom/uk-construction-market-view-spring-2026",
      "title": "UK Construction Market Outlook Spring 2026 - Arcadis",
      "content": "What is the forecast for UK construction inflation?\n\n  Construction cost inflation is expected to remain moderate in the near term due to soft demand and competitive pressure across supply chains. However, rising commodity and energy prices, labour shortages, and increased infrastructure investment could create renewed inflationary pressure as market activity strengthens.\n How will building costs change in 2026? [...] The Spring 2026 Arcadis UK Market View examines the forces shaping the UK construction market, from shifts in sector performance and regional activity to emerging cost pressures and long-term infrastructure investment.\n\n## UK construction industry trends, growth, and inflation insights\n\nThe Spring 2026 Arcadis UK Market View provides a data-driven perspective on the forces shaping the UK construction sector. The report combines market research and analysis, sector insights, and forward-looking forecasts to help industry leaders navigate an uncertain recovery.\n\nConstruction growth and sector performance analysis—how residential, commercial, infrastructure, and public sectors are diverging in a two-speed recovery. [...] ## The state of the construction market in the UK\n\nThe UK construction sector has entered 2026 facing an uneven recovery. After a promising start to 2025, activity slowed significantly in the second half of the year, with new build output declining even as the pipeline of future work continued to grow.\n\nAffordability pressures, regulatory complexity, and delayed investment decisions are slowing the conversion of projects from planning to delivery, particularly in the residential sector. At the same time, other parts of the market—including commercial development and infrastructure investment—are showing early signs of renewed momentum.",
      "score": 0.6055431,
      "raw_content": null
    },
    {
      "url": "https://www.gov.uk/government/statistics/building-materials-and-components-statistics-march-2026/construction-building-materials-commentary-march-2026",
      "title": "Construction building materials: commentary March 2026 - GOV.UK",
      "content": "| Material price indices | February 2025 to February 2026 | January 2026 to February 2026 |\n --- \n| New housing | 3.4 | 0.1 |\n| Other new work | 1.1 | 0.6 |\n| Repair and maintenance | 2.7 | -0.1 |\n| All work | 2.1 | 0.4 |\n\nDownload data for table 1: construction material price indices, year-on-year and month-on-month percentage change\n\nThe material price index for ‘All work’:\n\n   increased by 2.1% in February 2026 compared with February 2025\n   increased by 2.0% in January 2026 compared with January 2025\n   increased by 0.4% in February 2026 compared with January 2026\n   decreased by 0.1% in January 2026 compared with December 2025\n\n#### Table 2: construction materials experiencing the greatest price increases and decreases in the 12 months to February 2026, UK [...] | Construction materials | (% change) |\n --- |\n| Imported sawn or planed wood | 7.6 |\n| Gravel, sand, clays and kaolin - incl aggregate levy | 7.3 |\n| Plastic doors and windows | 5.6 |\n| Precast concrete: blocks, bricks, tiles and flagstones | -2.3 |\n| Imported plywood | -6.7 |\n| Concrete reinforcing bars (steel) | -7.2 |\n\nDownload data for table 2: construction materials experiencing the greatest price increases and decreases in the 12 months to February 2026, UK\n\nThe aggregated construction material price indices hide larger price movements for some specific products and materials, table 2 shows the 3 largest increases and the 3 largest decreases.\n\nThe price data used for this publication predates the current hostilities within the Middle East, which commenced on 28 February 2026. [...] These statistics support analysis of the construction materials market and business planning. They are regularly reported in the construction press and are used for a variety of purposes, including policy development, evaluation and monitoring market trends. For further details see the Uses of these statistics section of this publication.\n\n## 3. Summary of results\n\n### 3.1 Material price indices\n\n#### Figure 2: construction material annual price inflation, UK\n\nImage 3\n\nSource: monthly statistics of building materials and components, table 1\n\nDownload data for figure 2: construction material annual price inflation, UK\n\n#### Table 1: construction material price indices, year-on-year and month-on-month percentage change",
      "score": 0.57006866,
      "raw_content": null
    },
    {
      "url": "https://ww3.rics.org/uk/en/journals/construction-journal/budget-preview.html",
      "title": "What is the economic outlook for 2026? | Journals - MODUS | RICS",
      "content": "The chancellor has vowed to avoid inflationary tax hikes, suggesting the package will prioritise other tax increases over VAT or duties, which would be more problematic for the sector.\n\n## Concluding remarks\n\nThe UK construction sector approaches 2026 in a delicate position.\n\nThe key variable remains timing. The sector's interest-rate sensitivity means it will be among the first to benefit from cheaper borrowing, potentially reviving stalled projects and improving development viability.\n\nActivity has softened, confidence is muted and structural challenges around planning and skills persist. Yet the macroeconomic environment is shifting more favourably than seemed possible just weeks ago. [...] CONSTRUCTION JOURNAL\n\n# What is the economic outlook for 2026?\n\nUK economic performance is currently on a knife edge as the chancellor prepares the Autumn Budget\n\n Tarrant Parsons\n\n19 November 2025\n\nEconomics\n\nProjects and people\n\nPublic sector\n\nQuantity surveying and construction\n\nAerial view of Westminster palace\n\nAs we approach the close of 2025, the UK construction sector is navigating a complex landscape marked by significant headwinds.\n\nWith GDP projected to grow by around 1.5% this year, placing the UK among the faster-growing G7 economies, construction output has also increased by approximately 1.5% in 2025 so far, making a positive contribution to overall economic expansion.",
      "score": 0.4362623,
      "raw_content": null
    }
  ],
  "formatted": "Source: UK Steel Price Forecast 2025–2026 | Market Outlook\nURL: https://coremetsteel.com/news-insights/uk-steel-price-forecast-2025-2026/\n##### Steel Market Snapshot (2024 Recap) In 2024, UK steel prices saw moderate increases as energy costs settled and imports from Turkey and Asia increased competitiveness. Overall annual movement: Merchant Bars: +4% to +7% Coil Sheets: +5% to +8% Structural Steel: Stable to +3% Rebar: +2% to +5% This forms the baseline for 2025–2026 expectations. ##### Price Outlook for 2025 UK steel prices are expected to rise gradually due to stronger construction demand, global scrap trends, and steady energy costs. Merchant Bars: +3% to +6% Coil Sheets: +2% to +7% Structural Steel: Stable to +4% Rebar: +2% to +5% Import pressure — especially from Turkey and India — will help prevent sharp increases, but procurement teams should still expect gradual quarterly rises. [...] ##### Key Factors Shaping Prices Energy Costs: Still a major influence on mill production costs. Scrap Steel Prices: Particularly impactful for merchant bars and rebar. Import Competition: Turkish and Asian mills continue to offer competitive pricing. UK Construction Demand: Infrastructure and housing projects will support steady consumption. Logistics: Reduced freight rates in 2025–2026 improve import affordability. ##### Practical Advice for Steel Buyers [...] The UK steel price forecast for 2025–2026 is a key concern for builders and fabricators as the market shifts after recent volatility. This overview explains the expected price trends and what buyers should prepare for. Steel prices in the UK are entering a period of moderate but steady movement, making 2025–2026 an important planning window for builders, fabricators, and procurement teams. After a volatile 2023–2024 shaped by energy fluctuations and supply chain challenges, the market is now stabilising — but several key drivers will continue to influence c\n\n---\n\nSource: Global construction cost trends - GCMI 2025\nURL: https://publications.turnerandtownsend.com/global-construction-market-intelligence-2025/global-construction-cost-trends\nIn developed regions, construction inflation rates continued normalising in 2024, as the effects of restrictive interest rates and softening demand filtered through the economy. The UK recorded an average increase of 3.0 percent, while Europe experienced average inflation of 2.9 percent. North America reported 3.6 percent, whereas Australia and New Zealand experienced a higher rate of 4.7 percent for the year, largely driven by a newly negotiated enterprise agreement introducing a payrise for construction labour, though this still marks an improvement compared to previous years. These figures indicate a return to escalation rates more aligned with those seen prior to the pandemic, suggesting greater stability in material pricing and project-related costs. [...] In the UK and North America, construction cost inflation is anticipated to remain steady at 3.5 percent and 3.8 percent, respectively. However, at the time of the survey, uncertainties persist, particularly in the US, where policy changes could have significant implications for construction. Factors such as fluctuations in plant and material costs and deportation policies affecting labour availability are expected to be key considerations influencing future trends. Given the potential for rapid market shifts, ongoing monitoring of developments is advised to ensure timely adaptation to changing conditions. #### GLOBAL ## Construction input costs and global supply trends ### Labour [...] Image 28 Construction cost growth continues to show signs of easing at the global level. On average, construction cost inflation is projected to settle at 3.9 percent globally in 2025, before rising marginally to 4 percent in 2026, though regional disparities persist.\n\n---\n\nSource: UK Construction Market Outlook Spring 2026 - Arcadis\nURL: https://www.arcadis.com/en-gb/insights/perspectives/europe/united-kingdom/uk-construction-market-view-spring-2026\nWhat is the forecast for UK construction inflation? Construction cost inflation is expected to remain moderate in the near term due to soft demand and competitive pressure across supply chains. However, rising commodity and energy prices, labour shortages, and increased infrastructure investment could create renewed inflationary pressure as market activity strengthens. How will building costs change in 2026? [...] The Spring 2026 Arcadis UK Market View examines the forces shaping the UK construction market, from shifts in sector performance and regional activity to emerging cost pressures and long-term infrastructure investment. ## UK construction industry trends, growth, and inflation insights The Spring 2026 Arcadis UK Market View provides a data-driven perspective on the forces shaping the UK construction sector. The report combines market research and analysis, sector insights, and forward-looking forecasts to help industry leaders navigate an uncertain recovery. Construction growth and sector performance analysis—how residential, commercial, infrastructure, and public sectors are diverging in a two-speed recovery. [...] ## The state of the construction market in the UK The UK construction sector has entered 2026 facing an uneven recovery. After a promising start to 2025, activity slowed significantly in the second half of the year, with new build output declining even as the pipeline of future work continued to grow. Affordability pressures, regulatory complexity, and delayed investment decisions are slowing the conversion of projects from planning to delivery, particularly in the residential sector. At the same time, other parts of the market—including commercial development and infrastructure investment—are showing early signs of renewed momentum.\n\n---\n\nSource: Construction building materials: commentary March 2026 - GOV.UK\nURL: https://www.gov.uk/government/statistics/building-materials-and-components-statistics-march-2026/construction-building-materials-commentary-march-2026\n| Material price indices | February 2025 to February 2026 | January 2026 to February 2026 | --- | New housing | 3.4 | 0.1 | | Other new work | 1.1 | 0.6 | | Repair and maintenance | 2.7 | -0.1 | | All work | 2.1 | 0.4 | Download data for table 1: construction material price indices, year-on-year and month-on-month percentage change The material price index for ‘All work’: increased by 2.1% in February 2026 compared with February 2025 increased by 2.0% in January 2026 compared with January 2025 increased by 0.4% in February 2026 compared with January 2026 decreased by 0.1% in January 2026 compared with December 2025 #### Table 2: construction materials experiencing the greatest price increases and decreases in the 12 months to February 2026, UK [...] | Construction materials | (% change) | --- | | Imported sawn or planed wood | 7.6 | | Gravel, sand, clays and kaolin - incl aggregate levy | 7.3 | | Plastic doors and windows | 5.6 | | Precast concrete: blocks, bricks, tiles and flagstones | -2.3 | | Imported plywood | -6.7 | | Concrete reinforcing bars (steel) | -7.2 | Download data for table 2: construction materials experiencing the greatest price increases and decreases in the 12 months to February 2026, UK The aggregated construction material price indices hide larger price movements for some specific products and materials, table 2 shows the 3 largest increases and the 3 largest decreases. The price data used for this publication predates the current hostilities within the Middle East, which commenced on 28 February 2026. [...] These statistics support analysis of the construction materials market and business planning. They are regularly reported in the construction press and are used for a variety of purposes, including policy development, evaluation and monitoring \n\n---\n\nSource: What is the economic outlook for 2026? | Journals - MODUS | RICS\nURL: https://ww3.rics.org/uk/en/journals/construction-journal/budget-preview.html\nThe chancellor has vowed to avoid inflationary tax hikes, suggesting the package will prioritise other tax increases over VAT or duties, which would be more problematic for the sector. ## Concluding remarks The UK construction sector approaches 2026 in a delicate position. The key variable remains timing. The sector's interest-rate sensitivity means it will be among the first to benefit from cheaper borrowing, potentially reviving stalled projects and improving development viability. Activity has softened, confidence is muted and structural challenges around planning and skills persist. Yet the macroeconomic environment is shifting more favourably than seemed possible just weeks ago. [...] CONSTRUCTION JOURNAL # What is the economic outlook for 2026? UK economic performance is currently on a knife edge as the chancellor prepares the Autumn Budget Tarrant Parsons 19 November 2025 Economics Projects and people Public sector Quantity surveying and construction Aerial view of Westminster palace As we approach the close of 2025, the UK construction sector is navigating a complex landscape marked by significant headwinds. With GDP projected to grow by around 1.5% this year, placing the UK among the faster-growing G7 economies, construction output has also increased by approximately 1.5% in 2025 so far, making a positive contribution to overall economic expansion."
}