UK Construction PMI Falls to 43.6 as Housebuilding Weakens
Residential project starts fell 29% year-on-year due to rising borrowing costs and weak consumer confidence, according to data from S&P Global Market Intelligence.
- The UK construction sector contracted at the fastest pace in four months during October, with the S&P Global UK Construction Purchasing Managers' Index falling to 43.6 from 46.1 in September, marking nearly two years of industry decline.
- Housing development plummeted to 35.1 in October, the lowest reading of 2026. Tim Moore, Economics Director at S&P Global Market Intelligence, cited "rising borrowing costs, weak consumer confidence and elevated economic uncertainty" as severe headwinds.
- Construction intelligence outfit Glenigan reported underlying work starting on site was 20% lower than last year at £12.9bn. However, data showed strong demand for data centre projects and rising workloads in energy and utilities sectors.
- Kelly Boorman, National Head of Construction at tax consultancy RSM UK, warned the industry faces a suppressed first half of 2027 as rising build costs and stagnant house prices squeeze margins and drive site viability concerns.
- Upcoming 10-year government plans and efforts to reduce planning delays may provide the stimulus needed to return the sector to growth, building on the September launch of the "Your First Home" scheme aimed at first-time homebuyers.
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11 Articles
UK Construction Downturn Deepens In October
The UK construction activity contracted at the fastest pace in four months in October. The construction purchasing managers' index dropped to 43.6 in October from 46.1 in September. Among three monitored sectors, residential activity was the weakest-performing segment due to low consumer confidence, elevated risk aversion, and headwinds from rising borrowing costs.
Construction activity down for 22nd successive month
The building sector remains firmly on course for two full years of steadily declining workloads after registering a 22nd successive month of falling activity. S&P Global's UK Construction Purchasing Managers' Index posted 43.6 for October, with anything below 50 representing a fall from the prior…
Housebuilding slump drags down UK construction activity, PMI shows
Construction activity drops in October at fastest rate since June - Builders Merchants Journal
There was a sharp and accelerated reduction in construction industry business activity during October, according to the seasonally adjusted S&P Global UK Construction Purchasing Managers’ Index™ (PMI®). At 43.6, down from 46.1 in September, the headline index registered below the neutral 50.0 value for the twenty-second month running. In addition, that rate of contraction was …
Housebuilding Slump Hampers UK Construction Sector in October
Read the latest magazine Housebuilding Slump Hampers UK Construction Sector in October Sharpest fall in total activity since June Residential work declines at fastest pace in 2026 to date Input price inflation accelerates to four-month high 5 November 2026 Industry News 5 November 2026 Construction companies signalled a sharp and accelerated reduction in business activity during October. At 43.6, down from 46.1 in September, the headli…
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