The latest S&P Global UK Construction PMI report shows that output levels fell again in the UK construction sector, but at the slowest pace since March. This contributed to a sustained rebound in business activity expectations for the year ahead. Supply chain performance meanwhile improved and input price inflation eased to a five-month low.

At 44.7 in July, up from 38.4 in June, the seasonally adjusted S&P Global UK Construction Purchasing Managers’ Index (PMI) reached its highest level for four months and remained below the neutral 50.0 threshold. Reduced volumes of business activity have been recorded since January 2025, which is the longest continuous period of decline since the global financial crisis.

Much slower rates of contraction were seen in all three main sub-sectors in July. Commercial work (index at 46.8) showed the greatest resilience, while civil engineering activity again saw the steepest pace of decline (38.3). Meanwhile, house building activity decreased at the least marked pace since October 2025 (index at 41.8).

Total new business received by construction companies fell at the slowest pace for 10 months in July.  Mirroring the trends seen for business activity and new work, latest data highlighted a softer reduction in employment numbers across the construction sector. The rate of job losses was the slowest since February. 

Tim Moore, Economics Director at S&P Global Market Intelligence, stated: “July data suggests that the performance of UK construction sector has started to stabilise after a sharp downturn throughout the second quarter of 2026. Business activity levels continued to decline in all three main categories, but in each case the rate of contraction was much slower than in June. This was supported by the weakest reduction in new business intakes since September 2025.”

Source: https://www.spglobal.com/en