Confidence in international construction markets has dipped as markets absorb the ongoing uncertainty over US trade policy, a survey of more than 2,300 construction firms around the world indicates.

The Royal Institute of Chartered Surveyors (RICS) has released the first quarter edition of the Global Construction Monitor.

Overall, the monitor suggests that increasing trade uncertainty has impacted construction market activity and confidence.

On an aggregate basis, the RICS Construction Sentiment Index fell from an elevated level of +17 in the December quarter to +9 in the March quarter.

This suggest that whilst conditions remain positive overall, sentiment has dampened from previously upbeat expectations in the December quarter.

(The index is constructed by taking an unweighted average of current market conditions and twelve-month expectations for residential workloads, non-residential building workloads, infrastructure workloads and profit market.)

In terms of regions, the most significant impact was found in APAC (see chart).

Overall, sentiment in this region turned pessimistic during the quarter.

Whilst the report did not suggest why this was the case, the subdued performance in this region is not surprising in light of concerns about how US tariffs may impact some Asian economies.

Sentiment in the region is also being weighed down by China, where confidence levels stand at a record low -45 amid persistent weakness in property markets throughout that country.

Elsewhere, according to the report:

  • Sentiment dipped in The Americas despite remaining strongly in expansionary territory in that region. In particular, sentiment fell into negative territory in Canada – a phenomenon which the report notes likely reflects concerns over US trade policy.
  • The index remains very high in the Middle East and Africa amid ongoing strength in markets such as the UAE and Saudi Arabia.
  • Sentiment continues to improve in Europe as the impact from higher interest rates and inflation upon residential markets appears to be easing.

In terms of sectors, meanwhile, infrastructure remains the star performer (see chart).

The latest data comes as Trump’s tariffs have emerged as an additional concern in terms of the world’s construction markets.

Last month, Oxford Economics downgraded its forecast for global construction activity by 1.3 points and 0.9 points in 2025 and 2026 respectively in response to the evolving trade situation.

In its forecast, Oxford suggested that from a construction market viewpoint, the primary impact of the tariffs will be seen through lower levels of private sector investment.

This will occur as greater uncertainty amplifies the risks around investment decisions and thereby makes it more difficult to obtain the finance which is needed for construction work.

It said that the US and Asia face the most significant downgrades – the latter being heavily exposed to US trade policy.

Meanwhile, the industrial sector will be most heavily impacted as a weaker trade outlook impacts demand for manufacturing and warehouse facilities.

Overall, Oxford says expects a concentration in global activity levels in 2025 on account of ongoing challenges in China before a modest rebound thereafter.

Questionnaires for the latest RICS survey were sent out between 10 Mary and 21 April.

All up, 2363 construction firms responded globally.

 

Enjoying Sourceable articles? Subscribe for Free and receive daily updates of all articles which are published on our site

 

Want to grow your sales, reach more new clients and expand your client base across Australia’s design and construction sector?

Advertise on Sourceable and have your business seen by the thousands of architects, engineers, builders/construction contractors, subcontractors/trade contractors, property developers and building industry suppliers who read our stories across the civil, commercial and residential construction sector