The SME State of Trade Survey, January to June 2026
The SME State of Trade Survey, January to June 2026
A joint Federation of Master Builders (FMB) and Chartered Institute of Building (CIOB) publication monitoring key indicators and predicted future short-term developments for micro and SME building firms.
For more than 30 years, the State of Trade Survey has monitored key indicators and predicted future short-term developments for micro and SME building firms.
It is the only survey of its kind to focus exclusively on small and medium-sized (SME) firms throughout the construction sector. The report looks at activity from January to June 2026, referred to in this report as H1. It also casts ahead to July to December 2026.
This survey is commissioned by the Federation of Master Builders (FMB) and this is the third report that the Chartered Institute of Building (CIOB) has supported the survey, to gain a better indication and wider spread of the micro and SME building firm market.
Key Indicators from the report include:
Construction Industry Outlook: Q1 and Q2 2026 (H1 2026)
The first half of 2026 presented a mixed picture for the construction industry. While increases in workloads, enquiries and employment were reported by a notable proportion of businesses, the findings also indicate that growth remains uneven across the sector.
Workload:
The net balance for total workload fell to -4% in H1 2026, compared with +22% in H2 2025 and +25% in H1 2025, indicating that slightly more businesses experienced declining workloads than increasing.
Employment:
Employment also weakened, with the net balance declining to -4% in H1 2026, down from +17% in H2 2025 and +26% in H1 2025. Despite one-quarter of businesses reporting workforce growth, more companies reported reductions in staffing levels, resulting in a negative net employment balance.
Enquiries:
Demand conditions softened further, with the net balance for enquiries falling to -10%
in H1 2026, compared with +18% in H2 2025 and +34% in H1 2025. This represents the weakest of the three headline indicators and suggests a reduction in the pipeline of future work across the sector.
The report also asks the SME sector about challenges in recruiting skilled staff, job delays and the prices and costs associated with construction projects.
A full copy of the report can be downloaded below.