UK Construction Falls More Than Expected

2026-05-07 08:42 By Andre Joaquim 1 min. read

The S&P Global UK Construction PMI sank to 39.7 in April of 2026 from 45.6 in the previous month, well below market expectations of 45.7 to deepen the streak of 16 consecutive contractions.

The data reflected the early impact of surges in energy prices due to the war in the Middle East, which halted exports of oil and refined products.

Firms noted subdued demand, with geopolitical uncertainty driving clients to delay committing to projects and soften the announcement of new tender opportunities.

Consequently, constructors lowered their staffing levels in the period.

On the price front, fuel surcharges drove a majority of surveyees to report higher input prices, which rose at the sharpest rate since June 2022.

The deterioration in activity was the sharpest for civil engineering activity, followed by residential construction and commercial construction.



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UK Construction Falls More Than Expected
The S&P Global UK Construction PMI sank to 39.7 in April of 2026 from 45.6 in the previous month, well below market expectations of 45.7 to deepen the streak of 16 consecutive contractions. The data reflected the early impact of surges in energy prices due to the war in the Middle East, which halted exports of oil and refined products. Firms noted subdued demand, with geopolitical uncertainty driving clients to delay committing to projects and soften the announcement of new tender opportunities. Consequently, constructors lowered their staffing levels in the period. On the price front, fuel surcharges drove a majority of surveyees to report higher input prices, which rose at the sharpest rate since June 2022. The deterioration in activity was the sharpest for civil engineering activity, followed by residential construction and commercial construction.
2026-05-07
UK Construction Activity Falls Less than Expected
The S&P Global UK Construction PMI rose to 45.6 in March of 2026 from 44.5 in the previous month, stretching the streak of over one year in monthly contractions for the sector, but above the median market consensus of 43.9. The survey indicated that operating margins remained under pressure in the period due to a sharp acceleration in input cost inflation. Companies noted that the outbreak of war in the Middle East increased prices of energy and raw materials used in projects. Residential housing activity declined further with an index of 38.2, while civil engineering activity (44.8) and commercial construction (47.1) contracted at slower paces. Looking ahead, confidence continued to fall, although companies were confident in more orders from clients in the energy sector.
2026-04-08
UK Construction Activity Contracts Further
The S&P Global UK Construction PMI fell to 44.5 in February of 2026 from 46.4 in the previous month, contrasting with expectations that it would improve slightly to 47 to reflect a deeper contraction in the British construction activity. Firms surveyed reported lower levels of new orders, magnifying the impact of new project starts amid low demand from clients and bad weather on sites. Residential building construction declined at the fastest pace among activity groups, followed by civil engineering output and commercial space construction, which also dropped sharply. Still, business confidence improved to its highest since December of 2024, with the panel expecting new contract wins and a turnaround in economic conditions.
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