The CEA (Construction Equipment Association) has today published its June 2025 economic update—a summary designed to help construction equipment manufacturers understand how current economic trends, government policy, and energy pricing are likely to impact their business over the coming months.
The CEA summary also captures key elements from this week’s UK Industrial Strategy.
Drawing on the Government’s Spending Review, the latest ONS data and wider macroeconomic factors, the report focuses on developments most relevant to UK manufacturers, including key indicators such as construction output, inflation, employment, and ongoing energy price pressures. The update has been produced to complement the CEA’s Market Insight Service and help members make informed decisions in a complex and changing environment.
Viki Bell, Chief Executive, CEA, said: “We know how important it is for our members to have access to clear, practical information about the economic forces affecting their businesses.
“This summary brings together the latest data, puts it into context, and offers a view of the road ahead. I hope it’s a useful resource — and we’d welcome feedback on whether you’d like to see more of these briefings.”
The publication comes at a crucial time, with the Infrastructure Plan and long-awaited Industrial Strategy both due to be released in the coming weeks. The CEA plans to follow up with a further update once those documents are available.
Key insights from the June update:
- Spending Review 2025: increased investment, but tighter scrutiny
- Construction performance: resilient despite wider economic contraction
- Energy pricing pressures: a major competitiveness issue
The overall picture is mixed. There are positives: public investment in housing, green energy and infrastructure could drive future equipment demand. Policy trends also align with the sector’s strengths — including digital site delivery and Modern Methods of Construction.
However, challenges persist. High energy prices are making UK manufacturing less competitive, and ongoing uncertainty around capital project approvals could slow order pipelines. A skills shortage in green and advanced machinery operation also continues to hold back potential growth.
Viki concluded: “We aim to provide useful, relevant insight that helps our members plan with greater confidence. We know that many businesses are dealing with uncertainty on multiple fronts — from energy costs to investment decisions — and we’ll continue to monitor developments closely and share updates as they emerge.”
