Issue 505 | 10 November 2025 - Turner & Townsend alinea

UK construction and property

PMI | The S&P Global UK Construction PMI fell to 44.1, from 46.2 in September, marking the 10th consecutive contraction. The sector is now in its longest sustained downturn since the 2008 financial crisis.
Profit warnings among FTSE-listed construction firms have nearly tripled in 2025, rising from five in 2024 to 14 this year. Half the warnings came from contractors and engineers, and the rest were from building material firms. The report by EY-Parthenon found that two-thirds of warnings cited contract/order cancellations or delays.
Administrations |15 firms went into administration in October, compared to 32 in September and 28 a year earlier. This is the lowest monthly total since January 2025 (10 failures) and the lowest October figure since 2020. However, year-to-date figures show minimal changes in administration levels when compared to the same period in 2024.
Mental health survey | The Construction Leadership Council has extended the deadline for its mental health survey to 21^st The announcement and survey can be found here.
Modular framework | The NHS has secured a £1 billion modular building framework with 32 suppliers. The framework is divided into three lots: consultancy, modular and prefabricated building services, and managed services.
Market recovery | The latest State of Trade Survey from the Construction Products Association shows that the market recovery is sluggish, and overall, companies expect no recovery in 2025.

Chinese exports contracted by 1.1% in October, driven by a 25% drop in shipments to the US. China’s shipments to the US have fallen by double-digits for seven consecutive months, while it has diversified its export markets to regions such as Southeast Asia and Africa.
German exportsrose 1.4% in September as exports to the US increased for the first time after five consecutive falls. Exports to the US increased by 11.9% on the month. Imports into Germany rose by 3.1% with a notable 6.1% increase in imports from China. The rise in Chinese imports come amid ongoing trade tensions, with calls for the EU to take protective measures for local industries.
US shutdown | A bipartisan deal is expected to secure enough votes to ensure passage of a spending bill through the Senate which will end the longest government shutdown in American history. Federal workers have been unpaid for 41 days and public services have been severely cut.

Interest rates | The Bank of England held interest rates at 4%, but four of the five MPC members voted for a cut. Analysts expect that the closeness of the vote and speculation of tax rises in the upcoming Budget could push down inflation and have increased the likelihood of rates being cut before the end of the year.
Pre-budget | Rachel Reeves gave a pre-Budget speech stating that “necessary choices” will be made in the upcoming Budget. The OBR is expected to downgrade productivity, meaning the Chancellor could face a £20 billion gap in meeting her tax and spending rules.
NEETS | An independent review into the number of young people not in employment, education, or training (NEETS) is to be launched by the government as the number has been rising with one in eight 16-24 year olds not working or studying.

Material sales | The Mineral Products Association (MPA) reported a further decline in demand for ready-mixed concrete. Sales volumes have now fallen in seven of the past eight quarters. Aggregate sales were broadly flat, while mortar increased by 1% in the three months to 30th September. The slowdown has been particularly sharp in London, where concrete sales have fallen by 32% year on year.
Brick deliveries fell by 0.5% in September 2025 compared to September 2024. Block deliveries dropped more sharply, by 4.2% year-on-year. Although the decline in bricks was smaller than August’s 5.2% drop, the trend remains downward.
Steel | The government’s plan to give businesses a cash grant for innovative new steel projects has been abandoned, with support going to steelworks instead. Ministers insist they will stick to a manifesto pledge to spend £2.5 billion on the steel industry, and there will be alternative ways for businesses to access funding.

EU Emissions | EU greenhouse gas emissions fell 2.5% last year, continuing a long-term decline attributed to reduced fossil fuel use, increased renewable energy, and improved energy efficiency.
Emissions gap | Despite recent emissions improvements, the UN has warned that the current national climate pledges are insufficient to meet the Paris Agreement goal of limiting global warming to 1.5°C, with the emission gap—the difference between current pledges and what’s needed—remaining dangerously wide. According to the UN’s latest Emission Gap Report, even if all current nationally determined contributions are met, the world is on track for a 2.5°C to 2.9°C temperature rise by the end of the century. The current head of COP30 warned that countries have lost enthusiasm for tackling the climate crisis.
Forest fund | The Brazilian president has proposed a fund called the Tropical Forests Forever Facility, which would pay 74 developing countries to keep their trees standing, using loans from wealthier nations and commercial investors. Financed by interest-bearing debt instead of donations, it aims to make it more lucrative for governments to keep their trees rather than cut them down.