Key facts
- The S&P Global UK Construction PMI fell to 43.6 in October from 46.1 in September, below every forecast in a Reuters poll.
- Housebuilding had its biggest drop in activity since December 2025, the survey said.
- Tim Moore of S&P Global Market Intelligence cited rising borrowing costs, weak consumer confidence and economic uncertainty as housebuilding headwinds.
- The survey's input cost index rose to its highest level since June after jumping more than 10 points on the month.
- The all-sector PMI rose to 52.1 in October from 51.5, the strongest reading since February.
Britain's construction sector shrank in October at its fastest pace since June, as housebuilding had its worst month of the year, according to the S&P Global UK Construction PMI published on November 5.
The index fell to 43.6 from 46.1 in September, below every forecast in a Reuters poll of economists, whose median estimate had pointed to no change. Readings below 50 denote contraction, which has been the case for the construction PMI for nearly two years.
Civil engineering and commercial activity contracted, but the downturn was especially severe for housing, which saw the biggest drop in activity since December 2025. Only the COVID-19 pandemic and the global financial crisis saw greater drops in housebuilding activity than October and December 2025, the survey said.
"Construction companies commented on severe headwinds in the housebuilding sector from rising borrowing costs, weak consumer confidence and elevated economic uncertainty," said Tim Moore, economics director at S&P Global Market Intelligence. "However, there were reports of strong demand for data centre projects, alongside rising workloads in the energy and utilities sectors," he added.
The survey's index of input costs rose to its highest level since June after jumping more than 10 points on the month, with respondents citing fuel surcharges and energy costs. Business optimism waned to its lowest level since May.
The all-sector PMI, a combination of the construction, manufacturing and services surveys, rose to 52.1 in October from 51.5, the strongest reading since February.