US EditionHousebuilding slump deepens as construction sector hits year-long decline
Demand and client confidence remain weak, with the S&P Global UK construction PMI at 40.1 in December, indicating ongoing sector contraction for a year.
- In the UK, construction firms reported that S&P Global's survey showed a PMI below 50, with UK housebuilding activity in its deepest slump since the start of the Covid pandemic.
- Builders surveyed said client confidence remained fragile and many firms reported delayed investment decisions ahead of the autumn budget, reducing builders' workloads.
- Month-on-Month, the downturn eased from the lowest point since May 2020, yet civil engineering shrank slightly less than in November and remained the weakest construction category last month.
- Some respondents said optimism grows from projected infrastructure spending in the utilities sector and hopes that lower borrowing costs and inflationary pressures will boost demand.
- The wider sector's year-long decline includes housebuilding and commercial work hitting their deepest slump since the early Covid pandemic, according to PMI data through last month.
15 Articles
15 Articles
The Northern Echo
Housebuilding slump deepens as construction sector hits year-long decline
Housing, commercial construction and civil engineering continued to contract sharply at the end of 2025.
UK housebuilding sinks to deepest slump since Covid lockdowns
UK housebuilding has fallen to its weakest level since the Covid-19 lockdowns of 2020, underlining the scale of the challenge facing ministers as they attempt to revive construction and meet housing targets. New data from S&P Global shows activity across the UK construction sector continued to shrink in December, with housing and commercial construction work both contracting at the fastest pace in more than four years. The survey of purchasing m…
December 2025 construction PMI shows continued decline
Despite a slight overall growth to 40.1 from the previous month, construction remains below the growth threshold for a whole year The December 2025 construction PMI from S&P Global highlights the 12th consecutive month that the industry has been below the growth threshold of 50.0. December also saw the second-lowest activity levels since May 2020. Every sector suffered While all major construction sectors saw declines, civil engineering saw the …
UK housebuilders face tough year-end, but optimism grows for 2026
Richard Pike, Chief Sales and Marketing Officer at Phoebus Software, reacted to the release of December’s S&P UK Global Construction PMI, which marked a challenging end to 2025 for UK housebuilders. “December rounded off a dismal year for UK housebuilders with another sharp fall in activity – although the rate of contraction eased from November’s five-and-a-half-year low. Even though interest rates have stabilised and demand for homes remains h…
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