{ "query": "UK construction cost inflation 2024-2026 steel industry benchmarks", "raw_results": [ { "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.deloitte.com/us/en/insights/industry/engineering-and-construction/engineering-and-construction-industry-outlook.html", "title": "2026 Engineering and Construction Industry Outlook | Deloitte Insights", "content": "Recent tariffs, especially on steel and aluminum, reaching up to 50%5—have sharply raised construction material costs.6 The effective tariff rate for construction goods climbed to a 40-year high of 25% to 30% in 2025.7 The financial impact is evident: Material prices have risen steadily from May through August 2025.8 [...] Copy \n\nImage 25\n\nIn 2025, the engineering and construction industry’s early growth momentum was increasingly tested by emerging challenges as the year progressed: Real value added climbed to US$890 billion in the second quarter—a 1% increase year over year—while real gross output reached US$1.732 trillion, reflecting a 0.6% fall.1 By July, total construction spending declined almost 3% year over year, primarily driven by downturns in commercial (–8.2%) and manufacturing (–7%) construction (figure 1).2 At the same time, firms grappled with persistent inflation, elevated interest rates, tariff uncertainty, acute labor shortages, supply chain disruptions, and material price spikes, contributing to tightened margins and stretched schedules.", "score": 0.6701125, "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://www.ibisworld.com/united-kingdom/bed/construction-materials-price-index/44255", "title": "Construction materials price index - IBISWorld", "content": "Over the five-year period through 2024-25, the UK CMPI is forecast to increase at a compound annual rate of 6.2% - the equivalent of a +39.6-point absolute change - to reach 151.9 points. While being a marked increase in absolute terms, this is partly due to the CMPI starting from a relatively low base in 2017-18 (94.5 points); nevertheless, a subsequent sustained rise in the value of underlying construction activity consistently pushed up supply chain prices, while recent pandemic-induced supply chain disruption and resultant exponential price inflation has more recently exaggerated growth in the CMPI. [...] ## Recent Trends – Construction materials price index\n\nOver the five-year period through 2024-25, the UK CMPI is forecast to increase at a compound annual rate of 6.2% - the equivalent of a +39.6-point absolute change - to reach 151.9 points. While being a marked increase in absolute terms, this is partly due to the CMPI starting from a relatively low base in 2017-18 (94.5 points); nevertheless, a subsequent sustained rise in the value of underlying construction activity consistently pushed up supply chain prices, while recent pandemic-induced supply chain disruption and resultant exponential price inflation has more recently exaggerated growth in the CMPI. [...] IBISWorld Logo\nIBISWORLD Logo\n\nBusiness Environment Profiles - United Kingdom\n\n# Construction materials price index\n\nPublished: 31 October 2025\n\n## Key Metrics\n\nConstruction materials price index\n\n### Total (2026)\n\n152 Index\n\n### Annualized Growth 2021-26\n\n3.3 %\n\n## Definition of Construction materials price index\n\n## Analyze the wider world in which businesses operate\n\nWe measure the upstream and downstream ramifications on thousands\nof industries so businesses can monitor their external operating\nenvironment. Explore membership options today.\n\nPurchase options\n\n## Included in an IBISWorld Membership\n\nOur industry reports include 35+ pages of data, analysis and charts, including:\n\n## Recent Trends – Construction materials price index", "score": 0.54985875, "raw_content": null } ], "formatted": "Source: 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: 2026 Engineering and Construction Industry Outlook | Deloitte Insights\nURL: https://www.deloitte.com/us/en/insights/industry/engineering-and-construction/engineering-and-construction-industry-outlook.html\nRecent tariffs, especially on steel and aluminum, reaching up to 50%5—have sharply raised construction material costs.6 The effective tariff rate for construction goods climbed to a 40-year high of 25% to 30% in 2025.7 The financial impact is evident: Material prices have risen steadily from May through August 2025.8 [...] Copy Image 25 In 2025, the engineering and construction industry’s early growth momentum was increasingly tested by emerging challenges as the year progressed: Real value added climbed to US$890 billion in the second quarter—a 1% increase year over year—while real gross output reached US$1.732 trillion, reflecting a 0.6% fall.1 By July, total construction spending declined almost 3% year over year, primarily driven by downturns in commercial (–8.2%) and manufacturing (–7%) construction (figure 1).2 At the same time, firms grappled with persistent inflation, elevated interest rates, tariff uncertainty, acute labor shortages, supply chain disruptions, and material price spikes, contributing to tightened margins and stretched schedules.\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: Construction materials price index - IBISWorld\nURL: https://www.ibisworld.com/united-kingdom/bed/construction-materials-price-index/44255\nOver the five-year period through 2024-25, the UK CMPI is forecast to increase at a compound annual rate of 6.2% - the equivalent of a +39.6-point absolute change - to reach 151.9 points. While being a marked increase in absolute terms, this is partly due to the CMPI starting from a relatively low base in 2017-18 (94.5 points); nevertheless, a subsequent sustained rise in the value of underlying construction activity consistently pushed up supply chain prices, while recent pandemic-induced supply chain disruption and resultant exponential price inflation has more recently exaggerated growth in the CMPI. [...] ## Recent Trends – Construction materials price index Over the five-year period through 2024-25, the UK CMPI is forecast to increase at a compound annual rate of 6.2% - the equivalent of a +39.6-point absolute change - to reach 151.9 points. While being a marked increase in absolute terms, this is partly due to the CMPI starting from a relatively low base in 2017-18 (94.5 points); nevertheless, a subsequent sustained rise in the value of underlying construction activity consistently pushed up supply chain prices, while recent pandemic-induced supply chain disruption and resultant exponential price inflation has more recently exaggerated growth in the CMPI. [...] IBISWorld Logo IBISWORLD Logo Business Environment Profiles - United Kingdom # Construction materials price index Published: 31 October 2025 ## Key Metrics Construction materials price index ### Total (2026) 152 Index ### Annualized Growth 2021-26 3.3 % ## Definition of Construction materials price index ## Analyze the wider world in which businesses operate We measure the upstream and downstream ramifications on thousands of industries so businesses can monitor their external operating environment. Explore" }