Confidence in the UK construction sector has remained steady despite mounting geopolitical uncertainty surrounding the war in Iran, according to new industry data.
Figures from Barbour ABI show that contract awards reached £7.18bn in March 2026. Although this marked a slight decline from February’s higher total, it remained in line with consistent performance seen throughout the first quarter of the year and above the levels recorded at the end of 2025.
Ed Griffiths, head of business and client analytics at Barbour ABI, said the data indicated resilience across the sector.
“What stands out is the breadth of activity across residential, infrastructure and industrial,” he said. “That does not remove the risks created by a more uncertain global backdrop, but the current data shows projects are still moving forward.”
Activity in March was spread across multiple sectors, suggesting the market is not overly reliant on a single area of growth even as businesses continue to monitor international developments.
Residential construction accounted for the largest share of contract awards, totalling £2.57bn. Significant schemes included the £148m Penvose Student Village, £120m Selby Urban Village and the £105m City Link House development in Croydon.
Infrastructure also remained a key contributor, with £1.52bn in awards, underpinned by ongoing investment in energy, transport and public sector projects.
Planning applications totalled £6.39bn in February 2026, broadly unchanged from the previous month and consistent with trends seen in late 2025. Residential projects again dominated, with the strongest activity recorded in the South East, East of England and North West.
Meanwhile, planning approvals rose to £11.7bn in March, maintaining elevated levels seen since the start of the year. Residential schemes continued to lead, while infrastructure approvals highlighted a shift towards nationally significant energy projects.
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