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 July to December 2025, referred to in this report as H2. It also casts ahead to January to April 2026.

This survey is commissioned by the Federation of Master Builders (FMB) and this is the second 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: Q3 and Q4 2025 (H2 2025)
In the second half of 2025, all of the key performance indicators (workload, employment, and enquiries) experienced net increases, but the figures fell compared to those seen in the first half of 2025. After the gains in the preceding wave, the latest results reflect a slower pace of growth. Nevertheless, all three net figures remain positive, indicating continued improvement across the board.
 

Workload:
Respondents reported a net workload increase of +22% in H2 2025, which is a slight decrease from +25% in H1 2025. This is the first time since Q2 and Q3 2023 where the net change of workload has been positive for consecutive waves.

Employment:
Employment was reported as a net increase, but this value fell from +26% in H1 2025 to +17% in H2 2025. However, the positive values for net change in employment are the highest they have been on record, with the next highest figure being +15% in Q4 2018.

Enquiries:
The industry saw a net increase of +18% in new enquiries in the H2 2025, compared to +34% in H1 2025. Even with this decrease, this figure continues to be positive, and comparable to figures seen before the Covid-19 pandemic.

A full copy of the report can be downloaded below.