UK Construction Activity Falls at Fastest Pace Since 2020

2026-06-04 09:19 By Erika Ordonez 1 min. read

The S&P Global UK Construction PMI fell to 38.2 in May 2026 from 39.7 in April, missing market expectations of 40.2 and signaling the sharpest contraction in construction activity since May 2020.

Housing remained the weakest-performing segment, while commercial and civil engineering also declined amid client caution linked to inflation and geopolitical tensions.

New orders fell at the fastest pace in six years as project delays, deferred investment decisions, and budget cuts weighed on demand.

Consequently, employment and purchasing activity continued to decline.

On the price front, input cost inflation accelerated to its highest level since June 2022, driven by higher fuel and transport costs.

Supplier delivery times also lengthened at the fastest pace since December 2022 amid shipping delays and material shortages.

Meanwhile, business confidence remained positive but eased to one of its weakest levels since late 2022 amid concerns over inflation, borrowing costs, and the outlook.



News Stream
UK Construction Activity Falls at Fastest Pace Since 2020
The S&P Global UK Construction PMI fell to 38.2 in May 2026 from 39.7 in April, missing market expectations of 40.2 and signaling the sharpest contraction in construction activity since May 2020. Housing remained the weakest-performing segment, while commercial and civil engineering also declined amid client caution linked to inflation and geopolitical tensions. New orders fell at the fastest pace in six years as project delays, deferred investment decisions, and budget cuts weighed on demand. Consequently, employment and purchasing activity continued to decline. On the price front, input cost inflation accelerated to its highest level since June 2022, driven by higher fuel and transport costs. Supplier delivery times also lengthened at the fastest pace since December 2022 amid shipping delays and material shortages. Meanwhile, business confidence remained positive but eased to one of its weakest levels since late 2022 amid concerns over inflation, borrowing costs, and the outlook.
2026-06-04
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