Construction Sector Shrinks at Fastest Pace Since Pandemic, Survey Suggests
The UK construction sector saw steep declines in civil, residential, and commercial building with new orders and employment falling sharply, marking the weakest residential activity since early 2020.
- On last month, S&P Global's PMI showed the UK construction sector contracted to 39.4, the lowest since May 2020, amid pre-Budget caution.
- Firms' negativity reflected worries about fiscal policy, with surveyed businesses reporting it was 'magnified by expectations of tax rises at the autumn Budget', while other surveys linked the build-up to weaker demand and motor sales slipping nearly 2%.
- Survey data showed steep sub-sector declines across civil engineering, residential construction, and commercial building, with new orders metric reporting 17% increases versus 44% falls.
- The downturn threatens delivery of the 1.5 million homes target across England, while S&P Global's cross-sector activity measure suggested near-zero growth, adding fuel to criticism of UK government messaging.
- Despite the plunge, the PMI had been contractionary across 2025, and analysts including Matt Swannell said activity would likely remain muted in the coming months despite some expecting a rebound.
12 Articles
12 Articles
November 2025 PMI drops to lowest since 2020
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S&P Global’s monthly purchasing managers’ index (PMI) covering November makes grim reading for the government. The survey of business behaviour showed steep falls in all three sub-sectors civil engineering, residential, and commercial building. Money latest: Is property still a good investment? Of particular interest to ministers will be signs of progress on its key housebuilding target of 1.5 million new homes across England by the end of the p…
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