UK Construction Activity Drops at Softer Pace

2025-09-04 08:49 By Judith Sib-at 1 min. read

The S&P Global UK Construction PMI rose to 45.5 in August 2025, from an over five-year low of 44.3 in July and slightly above market forecasts of 45.

A slower contraction in commercial building helped offset sharper falls in residential and civil engineering work, with housing activity posting its steepest drop since February and civil engineering its worst since October 2020.

New orders fell for the eighth month but at the slowest pace since January.

However, this ongoing weakness led to hiring freezes and non-replacement of departing staff, with employment levels falling at the fastest rate since May.

Purchasing activity was also reduced at the sharpest rate in three months.

Meanwhile, supplier delivery times shortened.

Input price inflation eased to a ten-month low, and output charges rose at the slowest pace in six months.

Finally, business activity expectations weakened further, with confidence at its lowest since December 2022 amid persistent uncertainty and economic headwinds.



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