The percentage of UK small businesses in the construction sector predicting growth for the final three-months of 2025 (17%) has fallen to the lowest level since spring 2024, according to new tracking data from Novuna Business Finance.
The construction sector also sees a rise for Q4 2025 in the percentage of small businesses forecasting contraction or decline (30%, up from 17% last Quarter). This comprises of 20% of small business owners that forecast their business with scale down or contract in the final three months of the year – with 10% saying they will struggle to survive.
When it comes to the percentage of small businesses that predict growth for the final three months of 2025, the construction sector trails the national average (25%) and most of the other industry sectors polled.
Jo Morris, Head of Insight at Novuna Business Finance comments: “Small business growth forecasts in the construction sector are down for the final months of the year. There are various factors at play. Market uncertainty is something small businesses do not like, US tariffs have been a cause of concern through 2025 and, for many small businesses, the long tail of Brexit still impacts business confidence – with fewer small businesses today looking to open up trading opportunities in EU markets. The looming Autumn Budget is also a concern for many, as there has been a lot of speculation about possible tax rises. At Novuna Business Finance we remain committed to helping established small businesses to secure funding to power future growth.”
