‘Intense’ Sector Contraction Eases but Confidence Remains ‘Well Short’
The PMI rose to 38.4 from 38.2 as housebuilding fell at the fastest pace this year and civil engineering posted its steepest drop since April 2020.
- Britain's construction sector remained in sharp contraction in June, with the Construction Purchasing Managers Index rising marginally to 38.4 from May's 38.2, though any reading below 50 signals ongoing decline.
- Housebuilding recorded its sharpest decline of 2026 so far as subdued housing sales, elevated interest rates, and squeezed consumer finances weighed on activity. Civil engineering slumped to its steepest fall since April 2020 amid delayed infrastructure work.
- Employment fell for an 18th straight month, compounding sector weakness. Cost pressures eased in June as supply chain disruptions were "notably less acute" than in April and May, with fewer shipping delays.
- Kiran Raichura, chief commercial real estate economist at Capital Economics, said the sector "appears to have stabilised" as construction activity reached a floor, with forward-looking expectations improving despite ongoing input price pressures.
- A rebound in business optimism emerged, with 38% of surveyed construction firms expecting increased activity over the year ahead, compared to 19% predicting decline following May's six-month low in sentiment.
15 Articles
15 Articles
‘Intense’ sector contraction eases but confidence remains ‘well short’
Construction sector activity contracted in June but not as rapidly as in May, when the rate dropped by its biggest margin since the Covid pandemic. S&P Global’s UK Construction Purchasing Managers’ Index (PMI) posted a score of 38.4 in June, where a score below 50… The post ‘Intense’ sector contraction eases but confidence remains ‘well short’ appeared first on Construction News.
Struggling Construction Sector Activity Performs Below Expectations
The heavy-hit construction sector has posted a weaker-than-expected recovery in the latest closely-watched activity statistics. The UK construction PMI came in at 38.4 in June, up marginally from May’s six-year low of 38.2 but still deep in contraction territory and below the 40.0 expected. Far below the neutral 50.0 mark… Output has now fallen every…
Housebuilding hits 2026 low point amid downturn
Activity in the UK’s housebuilding sector has fallen at its fastest pace so far this year, according to new figures. The S&P Global UK construction PMI showed a reading of 38.4 in June, marking a slight improvement on May’s six-year low of 38.2. However, it was still the second fastest fall in…
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