The 500th edition

Economic Week In Review | Issue 500 | 6 October 2025

UK construction and property

  • Tender prices | The latest Building Cost Information Service (BCIS) All-in TPI panel reported that tender prices increased by 0.7% between Q2 and Q3, reflecting cautious confidence in the pipeline. However, the panel reported continued caution among clients and a decrease in appetite to tender among contractors.
  • Lower Thames Crossing | A hydrogen digger has been used for ground investigations at the Lower Thames Crossing. It marks the machine’s first use outside of testing and a step forward for the large infrastructure scheme, which is currently seeing a financial model developed to enable delivery through a private finance model.
  • S106 | Research from the Home Builders Federation shows that almost 8,500 affordable homes could be left empty after registered providers are no longer taking them on and are stepping away from S106 deals. Instead, housing associations are moving to land-led developments, which gives them more control over projects.
  • Construction advisor | A new interim chief construction advisor has been named for the Ministry of Housing, Communities and Local Government (MHCLG). Thouria Istephan has been appointed for a 12-month term on a part-time basis for the role recommended by the Grenfell Final Report. Istephan previously spent 25 years at Foster + Partners and served on the Grenfell Tower Inquiry panel.
  • Market outlook | Glenigan’s latest outlook says that a rise in project starts over spring and summer now feels “like a distant memory,” as performance fell in residential and non-residential work. However, positive moves included a 32% rise in office starts in the quarter and a 123% increase compared to the previous year.
  • Tradespeople | Screwfix has warned that apprenticeships in the UK are not working for tradespeople, and there will be a significant shortage of people in the coming years, as one in four tradespeople are set to retire within the next five years.

Global economy

  • Japan | Sanae Takaichi has been picked as the head of Japan’s ruling party, a move that surprised the markets, sending Japanese shares higher and weakening the yen. Investors are concerned about uncertainty in economic policy. At the end of last week, polling suggested that the more fiscally cautious Shinjiro Koizumi would win the position.
  • Eurozone inflation | According to Eurostat’s latest flash estimate, inflation in the Eurozone rose to 2.2%, its highest in five months, driven by services and energy prices.
  • Eurozone manufacturing activity contracted in September as new orders fell at the fastest rate in six months, and manufacturers cut jobs at the fastest rate in three months.

UK economy

  • Household savings | The ONS has halved its estimates for household savings at the end of 2022 in its latest data revision to legacy GDP figures. It is the largest downgrade to official statistics in 30 years.
  • GDP growth slowed to 0.3% in Q2 from 0.7% in Q1. Growth was mainly driven by the services sector, construction, and government consumption, with production and business investment falling.
  • Jobs market | UK job vacancies fell for a second consecutive month in August, signalling a cooling labour market, according to job advert site Adzuna. Employers reduced their hiring after an increase in NIC in April along with fears of further tax rises in the November statement.

Materials and commodities

  • Merchant sales were virtually flat in July when compared with July 2023, according to the Builders Merchant Building Index. Volumes rose 0.6%, but price increases meant sales values increased by 0.1%. MRA Research – which produces the index – said that the hottest summer on record did not translate into additional sales.
  • Bricks | Latest figures from the DBT have shown that deliveries of bricks fell by 5.2% in August compared to the same time last year. This has raised concerns about continued weak demand in the housebuilding sector.
  • Steel dumping | The European Commission has imposed anti-dumping measures on certain hot-rolled flat products from Japan, a move that the Japan Iron and Steel Federation Chairman said was “unjust and extremely regrettable.”
  • US Dollar | The dollar is heading for its worst week since July as the US government shutdown increased uncertainty. The euro and sterling have made gains against the dollar, with the broader trend for the dollar increasingly bearish, especially if the Fed continues easing and US data softens further.
  • Copper prices increased, reaching $10,307 per metric ton at the LME due to ongoing supply disruptions and a weaker dollar, as the US government has entered a shutdown.
  • Fuel oil used in ships and power plants is seeing unexpectedly high demand, driven by longer shipping routes as vessels avoid the Red Sea and western sanctions. While global demand for diesel and jet fuel has fallen since 2019 pre-pandemic levels, fuel oil demand is up by 4.8%, according to the IEA June annual report.

Environment

  • Climate law | The Conservatives have pledged to scrap Britain’s landmark climate change law that limits pollution and replace it with a plan for “cheap and reliable” energy.
  • Solar | June 2025 was the first month in history when solar energy (22%) was the main source of electricity generated in the EU, ahead of nuclear, wind, hydro, and natural gas. Overall, in Q2 2025, 54% of net electricity generated in the EU came from renewable energy sources, an increase from the 52.7% registered in the same quarter of 2024.

Friday to Friday

Price / Index Week %
change		 Annual %
change
FTSE 100 9,491.25 2.22 14.62
FTSE 250 22,197.62 2.38 6.21
Nikkei 45,769.50 0.91 18.46
CSI 300 4,640.69 1.99 15.50
S&P 500 6,715.79 1.09 16.77
Nasdaq 22,780.51 1.32 25.60
CAC 40 8,081.54 2.68 7.16
Dax 24,378.80 2.69 27.50
$ per £ 1.3480 0.59 2.86
€ per £ 1.1475 0.11 -4.03
Gold £/oz 2,884.19 2.81 42.67
Brent Oil $/barrel 64.53 -6.78 -17.35

Weekly Summary

The outlook from Glenigan, material sales data, and the BCIS panel all suggest a slight slowing in the market, which seems to echo sentiment in the wider UK economy. This economy has recently been characterized by a cooling labour market and slowing GDP growth. Yet, construction’s specific labour problems—as commented on by Screwfix—continue to put pressure on projects.

This edition marks the Economic Week in Review’s 500th publication. We have created a short video tracking how the market has changed over that time period here.

Author contact

Rachel Coleman
Rachel Coleman,
Associate Research Analyst
Kishan Patel
Kishan Patel,
Research Analyst

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