Economic Week In Review | Issue 516 | 16 February 2026

UK construction and property

• State of trade | The latest State of Trade Survey by the Construction Product Association (CPA) for Q4 2025 found that weak demand remains the biggest challenge for the year ahead, with 71% of heavy-side and 60% of light-side firms expecting it to constrain sales. Sales were dragged down in late 2025 by slow construction activity, budget uncertainty, and subdued housing demand. Manufacturers also faced rising costs, particularly from wages and employer National Insurance increases.
• Total construction output grew by 1.8% in 2025, marking the fifth consecutive year of annual growth, according to new data from the ONS. In Q4 2025 output fell by 2.1% compared with Q3 2025, driven largely by a 3.6% drop in private new housing. On a monthly basis, output in December slipped by 0.5%, as a 1% rise in new work was outweighed by a 2.5% fall in repair and maintenance.
• Skills gap | According to new analysis from the Electrical Contractors’ Association (ECA), the number of apprentices entering the electrical trade has fallen by 5.5% over the past year, and Skills England estimates the UK will need an additional 12,000 electricians by 2030. While more than 26,000 learners enrolled in government-funded classroom-based apprenticeships in 2024/25, only one in five progressed into an apprenticeship or skilled electrical role, creating a deepening structural imbalance. The skills shortage is especially severe in Greater London, the Northwest, and the West Midlands, which continue to face the most acute regional deficits.

UK Healthcare Market Outlook

Our latest Healthcare Market Outlook explores what’s shaping the next chapter for healthcare, from a new wave of digitally enabled smart hospitals and the roll‑out of Neighbourhood Health Centres, to the increasing importance of digital‑ready infrastructure, workforce sustainability, and operational resilience. Find it here

Global economy

• US unemployment | US unemployment fell to 4.3% in January from 4.4% in December. The US added 130,000 jobs last month, the biggest monthly gain since late 2024.
• Trade agreement | The US and Taiwan have finalized a trade deal with a confirmed 15% US tariff rate for imports from Taiwan, down from the initial 20% imposed by Trump. Taiwan has also committed to a schedule for eliminating or lowering tariffs on nearly all US goods.
• EU growth | According to the latest flash estimates, both the EU and eurozone economies grew by 0.3% in Q4 2025, with annual growth for 2025 reaching 1.5% in the euro area and 1.6% in the EU. The latest release also showed unemployment ticked lower, with the number of people employed increasing by 0.2% in both the euro area and the EU in Q4 2025 compared to the previous quarter.

UK economy

• Economic growth | The UK’s economy grew by a modest 0.1% in Q4 2025, according to ONS figures. The data indicates weak but positive momentum at the end of the year, with growth remaining sluggish amid broader economic challenges.
• Consumer sentiment has fallen, according to S&P Global. Appetite to spend is lower, and concerns over debt have increased. However, the index has been in negative territory consistently since 2009.
• Migration levels | The National Institute of Economic and Social Responsibility (NIESR) said that the UK’s economy would be 3.6% smaller by 2040 if net migration were to fall to zero.

Materials and commodities

• Section 232 tariffs | US President Donald Trump is reportedly planning to roll back some tariffs on steel and aluminium products. According to the FT, his administration is now reviewing a list of products affected by the levies and plans to exempt some items, halt the expansion of the lists, and instead launch more targeted national security probes into specific goods.
• Cement | Researchers have developed a method to transform quartz quarry dust—a mining by-product—into a stronger and more sustainable cement material, serving as a partial replacement for natural sand in cement mortar. The results show that mortar becomes stronger with less porosity up to an optimal replacement level, potentially offering a practical and scalable solution to two global challenges: growing construction demand and industrial waste management.

Environment

• Emissions | New analysis by the Centre for Research on Energy and Clean Air (CREA) suggests that China’s carbon dioxide emissions have been flat or declining for nearly two years. This marks the longest such period not driven by an economic slowdown in the country.
• Climate regulations | US President Donald Trump has revoked the 2009 “endangerment findings,” a landmark Obama-era scientific ruling that classified greenhouse gases as a threat to public health and served as the legal foundation for all federal efforts to regulate emissions. The endangerment findings previously enabled the US Environmental Protection Agency to regulate greenhouse gas emissions from power plants, vehicles, oil and gas operations, aircraft, and landfills. By overturning it, Trump aims to eliminate all federal authority over emission controls.
• Shipping | New data from the Arctic Council Working Group on the Protection of the Arctic Marine Environment (PAME) shows that Arctic shipping reached record levels in 2025, representing a 40% increase since 2013, when consistent data collection began. Shipping traffic has rapidly increased due to the reduction of sea ice and the expansion of natural resource extraction projects.