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.
Retail sales of construction and earthmoving equipment flattened out in September and were at the same levels as September last year. This followed a spike in August, where sales showed double-figure growth. Sales in September were close to 2,800 units and took the total for the first three quarters of the year to 24,300 units, which is 5.9% above last year's level.
View the latest report on equipment sales for September (members only).
The October sales update will be published in the last week of November, so keep an eye out for that report.
The latest quarterly update on UK imports and exports of construction equipment for Q2 this year was published in August. Imports and exports of construction and earthmoving equipment both saw significant growth in Q2 compared with the first quarter and last year. This was particularly the case for Imports which reached the highest quarterly level since data has been monitored from 2013.
UK Imports saw a 32% increase in the tonnage shipped in Q2 and this took the total shipped in the first half of the year to a 39% increase compared with the first half of 2025. Japan remained as the leading source, accounting for 25% of total imports on a tonnage shipped basis, but this was a reduction from the 27% seen last year. China was in second place in the country ranking and saw its share increase to 16% in the first half of the year compared with 13% in 2025.
Exports of equipment showed an 8% increase in Q2 compared with the first quarter and this took tonnage shipped to a 17% increase in the first half of the year. The USA remained as the most significant destination for UK exports in the first half of the year, with tonnage shipped reaching 27% of total exports. This was an increase on the 21% share seen for the USA in 2025, with the lower level last year being due to import tariffs being implemented in August.
UK trade in construction equipment in Q3 2026 should be available later in November.
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 Index in October was only 43.6 after reaching 46.1 in September. This was the lowest level since June and has now recorded declining activity below the 50.0 threshold level for twenty-two consecutive months. Comments in the latest survey indicate that weak housebuilding was the biggest drag on activity last month due to rising borrowing costs, weak consumer confidence and ongoing economic uncertainty.
View the PMI for the UK construction market for October.
The Office for National Statistics (ONS) has published the latest data on construction activity up to August this year. The latest update showed a small decline of only 0.2% in August but also included some downward revisions to earlier months. As a result, output in the first eight months of the year is showing a decline of 1.3% compared with the same period in 2025. A decline in new work has driven this fall in activity, showing a decline of nearly 6% in the first eight months of the year, which has been offset to some extent by an increase in repair and maintenance activity of just under 5% during the same period.
The Construction Products Association (CPA) published their Summer forecast in July. In their latest update, overall construction output is expected to fall by 3.3% this year. This is a further reduction to the Spring forecast, which anticipated a reduction in activity of 2.5% this year. The latest update reflects the ongoing impact of the conflict in the Middle East, which is increasing costs and reducing demand within the sector.
The latest construction market review published by Glenigan in October shows a weak market outlook for the industry, with planning approvals, contract awards and project starts all showing declines in the latest 3 months compared with the previous 3 months. However, on an annual basis, contract awards have shown an increase compared with the previous 12 months, while planning approvals and project starts have shown a decline.
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