The New Year is the perfect time to look back, review 2025, and predict what could happen in 2026. You can do this for any kind of industry. We want to look at construction and architecture, exploring the difficult period over the past 12 months and the bright lights on the horizon for the future. Then, if you want some help with commercial architecture, homes and housing, or other projects, you can trust Coffey Architects.
A tough period
Data from S&P Global’s most recent index shows how difficult 2025 was for the construction and architecture industries. The headline finding is that there was no growth at all in the year. All categories had struggles, so it was hard for civil engineering, housing, and commercial.
The UK Construction PMI is one of the most significant indicators of activity. It uses responses from purchasing managers to give a reading. If readings are above 50, it signals that there is growth. On the other hand, any below that point indicate contraction. Sadly, with 40.1 in the latest index, it has been a full year of decline in activity.
It’s interesting to look at the different segments of the industry to see their current readings. The strongest segment is commercial, scoring 42. Housing is next with 33.5. At the opposite end, the weakest reading is civil engineering with 32.9. Crucially though, it was up 2.9 points on November. Whether you’re thinking about commercial architecture, housing, or other projects, it’s important to look at the current state of the industry.
Why was it a difficult year?
Two common factors were blamed for the construction industry’s struggles. Firstly is a lack of confidence. It has a massive impact, hurting underlying demand. If businesses aren’t confident, they are unlikely to invest in any kind of major projects.
Secondly, there were concerns about political decisions, particularly in the lead up to the Budget in November. Uncertainty here made many businesses delay making decisions on spending until the wider picture was clear.
Will 2026 be better?
There is a silver lining after all the doom and gloom though. The PMI finds there is more optimism for the coming year. Crucially, 37% of responders anticipate an increase in activity in 2026. This is against 20% fearing further decline.
More importantly, there are a couple of key factors that could encourage a boost in confidence and activity. The most notable is that the expectation is interest rates will fall. In addition, the forecast is inflation will cool too. If that does happen, more schemes that have been in limbo could move forward.
Discuss commercial architecture and other projects with us
Coffey Architects understands how much of an impact fragile confidence, political uncertainty, cost pressures, and other factors can have. However, things are looking better for the year ahead. If you’re planning to move forward with a project, we’d love to help. You can rely on us to design offices, homes, mixed-use developments, and more.
So, get in touch today and tell us what you have in mind. We’ve got a great track record, including creating sustainable commercial architecture to suit the modern demands of businesses.