en.Wedoany.com Reported - The latest quarterly monitoring report from the Royal Institution of Chartered Surveyors (RICS) shows a slight improvement in UK construction workloads in the second quarter of 2026, though overall activity remains in negative territory. The net balance for this quarter stood at -4%, recovering from -12% in the first quarter, but marking the fifth consecutive quarter in negative territory. A negative balance indicates that more respondents reported a decline in workloads than those reporting an increase. RICS stated that the improvement in the second quarter can be viewed as a partial stabilisation following the sharp deterioration in the first quarter, rather than a clear emergence of underlying momentum. The quarterly monitoring report collected responses from 1,135 construction companies across the UK.
By sector, infrastructure remained the most resilient segment, with the overall reading rising from +4% in the first quarter to +16%, reaching its highest level in seven quarters. Energy performed best, with the net balance climbing from +24% to +39%; water and sewerage rose from +20% to +23%; rail turned positive from -3% to +10%; and roads accelerated from +3% to +7%. In contrast, private housing remained the weakest sector for workloads, with a net balance of -12%, though this improved from -19% in the first quarter.
Simon Rubinsohn, Chief Economist at RICS, noted that the lacklustre improvement in housebuilder sentiment highlights the challenges facing new Prime Minister Andy Burnham as he seeks to revive construction activity and significantly boost social housing delivery. He added that beyond viability constraints, respondents continue to report regulatory hurdles impeding development progress, with issues related to the Building Safety Regulator still frequently cited despite improvements in processes.
Looking ahead, overall optimism has increased. The latest survey shows a net balance of +13% for workload expectations over the next 12 months, up from 2% in the first quarter. Infrastructure again led the way, with the expectations reading rising from +19% to +34%; forward-looking sentiment for private housing workloads also edged up from -2% to +6%, moving into positive territory. The forward-looking reading for credit conditions also showed marked improvement, with the three-month forward reading rising from -51% to -21% and the 12-month forward reading from -42% to -13%. RICS said this indicates that respondents no longer view financial market stress as severe as it was three months ago, consistent with a partial normalisation of inflation expectations since the peak of the shock in the first quarter.
Labour shortages persist, with the net balance of respondents reporting labour shortages rising from 34% in the first quarter to 36%. The materials shortage reading rose from 18% to 25%, which RICS attributes to consistent feedback on ongoing supply chain pressures. Rubinsohn said the monitoring report shows the construction industry remains under sustained pressure, with rising material costs exacerbating existing financial constraints and further reflected in margin pressures.
