Key facts
- The UK construction sector's downturn eased in July, with the S&P Global UK Construction PMI rising to 44.7 from 38.4 in June.
- Commercial building activity and housebuilding showed less sharp declines.
- New orders saw their slowest rate of decline since September 2025.
- Construction firms reported their highest optimism for the coming 12 months since February.
- The composite PMI, covering services and manufacturing, increased to 51.6, its highest in five months.
The downturn in Britain's construction industry eased in July, according to a survey by S&P Global. The UK Construction Purchasing Managers' Index (PMI) rose to 44.7 in July, up from 38.4 in June and surpassing the median forecast of 40.0. This indicates a stabilization in the sector after a significant downturn in the second quarter.
Commercial activity within the construction sector saw its highest index reading in four months, reaching 46.8. Housebuilding also experienced a slowdown in its decline, marking the least severe contraction since October 2025. While civil engineering continued to decline, the pace of this contraction eased from a more than six-year low recorded in June.
The gauge for new orders improved, signaling a slower decline in demand, with the index reaching its highest point since September 2025. However, employment continued to fall for the 19th consecutive month, though at a reduced pace compared to previous months. Subcontractor availability increased at the fastest rate seen since April 2025.
Input cost inflation moderated for the second consecutive month, with the index falling to 69.8 from 77.9 in June. Construction firms expressed their most optimistic outlook for the coming 12 months since February. The composite PMI, which encompasses services and manufacturing, rose to 51.6 in July, indicating overall economic expansion.