Performance in the construction sector is on the rise, according to new data published by Glenigan.

Its June Construction Index focuses on the three months to the end of May 2025, covering all underlying projects, with a total value of £100m or less (unless otherwise indicated), with figures seasonally adjusted.

Continuing the upward trend of the previous editions of the Index - specifically April and May 2025 - June paints an increasingly optimistic picture of an industry that is finally bouncing back following years of uncertainty.

These encouraging signals are borne out by a 25% uptick in projects starting on site in the three months to the end of May, whilst they also held firm against 2024 figures, posting a 10% increase.

Performance was buoyed by the residential construction market which rose 39% on the preceding three months to finish 45% higher than last year.

Whilst the non-residential sector fell by almost a fifth (-18%) compared to 2024 numbers, it held its own in the face of still-challenging socioeconomic conditions, breaking even when performance was measured against the three months to the end of May.

The decline in civils, which has been so severe over the past few Indexes, softened. Despite dropping by a third (-33%) compared to last year, it only down by 2% during the core measurement period.

Glenigan’s economic director, Allan Wilen, said: “The industry will welcome these results as, despite the downturn in major projects (Construction projects valued at >£100m) recently shown in the May Review, the underlying market, which represents the majority of work across the sector, appears to be on the up.

“Perhaps a higher degree of ‘relatively’ good news business stories coming from Downing Street is giving many investors that boost they so desperately needed to get building. Certainly, if the very strong figures in the residential vertical are anything to go by, we’ll likely see the curve continue to rise into H2 2025.

“Of course, the much-anticipate Spending Review is revealed this month and should have an interesting effect on industry confidence. Coming out just shy of our own Spring/Summer Forecast these two documents should offer a fascinating indicator of the future direction of activity across UK construction.”

Regionally, the South-west experienced a strong performance, increasing 27% against the preceding three months to stand 24% up against the previous year. The North-west performed similarly, rising 58% against the preceding three months and rising 1% against the previous year.

The South-east experienced a mixed result, rising 30% against the preceding three months to stand 2% down against the previous year. The capital rose 30% against the preceding three months to stand 2% up against the previous year.

The North-east experienced a strong performance, increasing 21% against the preceding three months to stand 10% up against the previous year. The West Midlands increased 34% against the preceding three months to stand 11% up against the previous year.