Welcome to the latest edition of our bi-monthly market insights blog which brings together all the key aspects of the market insight reports that I provide. I will be producing this overview and summary every other month to ensure that you don’t miss any of the key information we are sharing with members.
Following two months of significant declines, retail sales of construction and earthmoving equipment showed signs of stabilising in January, with a fall of only 3% in sales compared with the same month last year. As a reminder, sales in 2025 saw a moderate 4.6% increase for the full year, with sales reaching just over 29,000 units.
View the latest report on equipment sales for January (members only).
The February sales update will be published in the last week of March, so keep an eye out for that report.
The latest quarterly update on UK imports and exports of construction equipment for Q4 and the whole of 2025 was published in February. Imports and exports of construction and earthmoving equipment had different experiences in Q4 last year. Exports saw a significant rise compared with Q3, while imports saw a decline.
Exports of equipment showed a 23% increase in Q4 based on tonnage shipped, however, overall exports in 2025 were still slightly below the levels seen in 2024, with tonnage shipped 1.5% below 2024 levels. The USA remained as the most significant destination for UK exports last year, with tonnage shipped accounting for 21% of total exports. This is a lower share than earlier years despite quite a strong increase in Q4 exports. Most likely this was due to import tariffs being implemented in August.
UK imports saw a 15% decline in tonnage shipped in Q4, but despite this, the tonnage shipped in 2025 still ended up at 4.2% above the levels seen in the previous year. Japan remained as the leading source, accounting for nearly 27% of total imports on a tonnage shipped basis, and was more than double the level from China in second place.
UK trade in construction equipment in Q1 2026 should be available at the end of May.
The Purchasing Managers Index (PMI) provides a summary of all things construction from bricks to cement and is a good indicator of what is happening in the wider sector.
The latest Index fell back again in February. Following a strong pick up in January to reach 46.4, the Index fell back to 44.5 in February. Not surprisingly all sectors continued to show a decline, with housebuilding the weakest sector. Commercial was the best performing sector and saw the slowest decline since May 2025 at 48.4. The latest survey highlighted weak order bookings and a lack of new projects holding back activity across the industry.
View the PMI for the UK construction market for February.
The Office for National Statistics (ONS) have published the latest data on construction activity in the UK for December last year and the whole of 2025. Output showed a 0.5% decline in December and this resulted in a 2.1% decline in Q4. However, due to growth in earlier quarters, output for 2025 showed 1.8% growth compared with 2024, which was the fifth consecutive year of growth.
The Construction Products Association (CPA) published their Winter forecast in January. In their latest update, overall construction output is expected to rise by just 1.7% in 2026, a significant downgrade from the 2.8% growth forecast in October last year. The latest forecast continues to highlight modest levels of overall economic growth, alongside limited investment in the sector by the Government and ongoing skills shortages. In addition to this, wider economic and political uncertainty continues to limit potential growth prospects.
The latest construction market update published by Glenigan in February identified that planning approvals, contract awards and new project starts had all declined in the 3 months to January compared with the preceding 3 months. The latest report highlighted that the UK construction sector struggled in the three months to January. While business confidence has been tempered by rising costs and a cautious approach to new activity, the industry remains focused on navigating these broader economic pressures.
There are many other key reports and indicators available on the construction equipment market insights area of the CEA website. These are all member only resources, so I encourage you to take a look.
I trust you find this summary useful and a good reminder of all the key industry statistics and indicators that are available to you as CEA Members. If there are any other measures or metrics you would like me to take a look at, please don’t hesitate to get in touch.
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