With all eyes on how the war in Iran will hit industry across the world, Barbour ABI’s latest monthly snapshot data shows that confidence in construction has not yet stalled.
Contract awards reached £7.18bn in March 2026. While that represented a modest softening from February’s elevated level, it remained consistent with the steady momentum seen through Q1 and above the run rate recorded across the final three months of 2025.
“The data shows that confidence in UK construction has not taken a hit,” said Ed Griffiths, head of business and client analytics at Barbour ABI. “What stands out is the breadth of activity across residential, infrastructure and industrial. That does not remove the risks created by a more uncertain global backdrop, but the current data shows projects are still moving forward.”
Rather than relying on a single sector, March activity was spread across residential, infrastructure and industrial sectors, even as businesses continue to monitor wider geopolitical risk.
Residential was the largest contributor to March contract awards, at £2.57bn. Major schemes included Penvose Student Village at £148m, Selby Urban Village at £120m and City Link House, Addiscombe Road at £105m. That level of activity indicates that large-scale projects are still moving into delivery.
Infrastructure also remains strong. Awards totalled £1.52bn, showing the sector remains well supported by a continuing flow of energy, transport and public works.
The wider planning pipeline mirrors this level of confidence. Planning applications totalled £6.39bn in February 2026, broadly stable month on month following January’s seasonal softening and in line with the baseline seen in late 2025.
Residential applications had the largest share of the month, with activity spread across the UK, but strongest in the South East, East of England and North West.
Planning approvals, meanwhile, rose to £11.7bn in March 2026, continuing the elevated activity seen across the opening months of the year. Residential was again the largest contributor, while infrastructure approvals reflected a clear sectoral shift towards nationally significant energy schemes.
Taken together, the figures suggest that while there are risks in the international market, UK construction is still pushing projects from planning into delivery. However, the resilience in awards and approvals does not necessarily mean every scheme is already translating into activity on site. Separate industry data on project starts has pointed to a weaker project delivery picture in recent weeks. Some developers and clients are still taking a more cautious approach to delivery as they assess cost and risk.
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