The Office for National Statistics has released its latest real-time economic indicators for 4 December 2025, offering a timely snapshot of how the UK is performing across business, workforce, energy, transport and housing activity. For most sectors the data is mixed, but for construction in particular it paints a revealing picture of an industry grappling with pressure on costs, labour constraints and uneven demand, yet still showing pockets of resilience as the year closes.
Retail footfall rising 3% week-on-week suggests consumer sentiment is stabilising into the Christmas period, but the year-on-year fall of 7% highlights how cautious households remain. That caution matters for construction; when consumers hold back, developers and housebuilders tread carefully too. The same tension appears in business confidence indicators. In late November, 35% of UK businesses with 10+ employees reported an increase in staffing costs over the last three months. That figure is lower than the spike seen in August, but it is still higher than the same period in 2024, evidence that wage pressure remains a constant headwind for contractors already squeezed by inflation and tighter margins. Rising labour costs are unlikely to ease in 2026 given the continued skills shortage and structural demand for experienced workers across trades, engineering and project management.
Workforce data deepens the concern. New online job adverts rose 7% from the previous period, but remain 5% lower than last year. Combined with a 17% increase in potential redundancies and a 9% rise in employers proposing redundancies, it suggests a labour market losing some of its earlier heat. For construction, where recruitment has been volatile throughout 2025, this could signal a shift: companies may be pausing new hires, consolidating teams, or preparing for leaner pipelines. Yet the redundancy data doesn’t necessarily imply long-term decline; rather, it reflects an industry recalibrating after a period of high-cost volatility, shifting demand patterns and delays in private and public sector projects.
One of the more sector-specific indicators is the number of new Energy Performance Certificates lodged for new homes in England and Wales, which rose 6% over the past week but remain 10% below last year. This is a subtle but important insight into the state of housing delivery. EPC lodgements track directly with the number of completed or nearly completed homes. A weekly rise shows movement, but the year-on-year decline confirms that 2025 has been a subdued year for housebuilding output. Developers have been cautious against a backdrop of planning uncertainty, higher borrowing costs earlier in the year, and uneven buyer confidence. Yet the uptick hints that some schemes delayed in the summer and early autumn are now progressing toward completion.
Taken together, this week’s indicators capture a UK economy that is steadying itself but not yet accelerating and construction finds itself in the centre of that balancing act. Costs are rising more slowly, but still rising. Labour markets are cooling, but not collapsing. Housing activity is moving, but below capacity. Energy costs are easing, but broader supply chain fragilities remain. For an industry that depends on long-term confidence and predictable investment, 2026 will hinge on whether these subtle shifts turn into sustained trends or continue to oscillate.
What the data ultimately reflects is an industry in transition. After navigating inflation, supply chain breakdowns, market hesitation and regulatory overhaul, UK construction is entering a period defined not by crisis but by careful recalibration. Stability may be returning, but it is fragile. Real-time indicators such as these will become increasingly important for business leaders trying to plan workforce needs, manage costs and assess delivery pipelines. As we approach year-end, the message is one of cautious resilience. Construction is still moving forward, but with eyes wide open.
