{"id":152018,"date":"2025-06-05T11:47:40","date_gmt":"2025-06-05T10:47:40","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=152018"},"modified":"2025-06-05T11:47:40","modified_gmt":"2025-06-05T10:47:40","slug":"construction-output-more-controlled-decline-june-2025-pmi","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/construction-output-more-controlled-decline-june-2025-pmi\/152018\/","title":{"rendered":"Construction output on more controlled decline in June 2025 PMI"},"content":{"rendered":"

Although still on a decline, both output and new orders fell at the slowest rate since January, with optimism still lighting the way forward<\/h2>\n

The June 2025 PMI shows a figure of 47.9 for May, a marginal increase from April\u2019s 46.6.<\/a><\/p>\n

However, some figures remain concerning, such as for employment with the fastest rate of job loss since August 2020.<\/p>\n

Housebuilding still a weak performer<\/h3>\n

At 45.1, housebuilding is the worst performing sector, with a downturn in residential construction work getting worse since April with conflicting demand.<\/p>\n

Civil engineering also took a hit at 45.9, marking the fifth month of decline for the sector, while commercial work\u2019s decline slowed considerably at 49.5.<\/p>\n

Respondents to the survey attribute the slow in new work\u2019s decline to a reduction in order intakes and delayed decision-making in clients, as well as cutbacks to capital spending budgets.<\/p>\n

It is likely that unemployment rose due to a continued reluctancy to fill vacancies as new work fails to increase and continued pressure from costs makes adding extra payroll more difficult.<\/p>\n

\"June
\u00a9S&P Global PMI. 2025 S&P Global.<\/figcaption><\/figure>\n

\u201cThe worst phase of spending cutbacks may have passed\u201d<\/h3>\n

Tim Moore, economics director at S&P Global Market Intelligence, said: “The construction sector continued to adjust to weaker order books in May, which led to sustained reductions in output, staff hiring and purchasing. However, the worst phase of spending cutbacks may have passed as total new work fell at a much slower pace than the near five-year record in February.<\/p>\n

“Housing activity was the weakest-performing segment in May as demand remained constrained by elevated borrowing costs and subdued confidence. Commercial work was close to stabilisation after a marked decline in April, suggesting that fears about domestic economic prospects have abated after the initial shock of US tariff announcements.<\/p>\n

“Output growth expectations across the UK construction sector recovered to the highest so far in 2025. Survey respondents mostly cited a general improvement in sales projections as well as a potential tailwind from falling interest rates over the year ahead.<\/p>\n

“On the inflation front, stubbornly high input price pressures were recorded in May, although the overall rise in purchasing costs was the least marked for four months. Many firms noted that suppliers continued to pass through greater payroll costs.<\/p>\n

“Rising wages, squeezed margins and subdued demand weighed on construction employment, despite a brighter outlook for business activity. Job shedding was the steepest since August 2020, while subcontractor usage decreased to the greatest extent for five years.”<\/p>\n

The PMI can be read in full here.<\/a><\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

The June 2025 PMI has been released, showing a more optimistic look in many ways but still concern for the rates of employment.<\/p>\n","protected":false},"author":32,"featured_media":152021,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[908,974],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-152018","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-planning-construction-news","8":"tag-economy","9":"tag-pmi"},"acf":[],"yoast_head":"\nConstruction output on more controlled decline in June 2025 PMI<\/title>\n<meta name=\"description\" content=\"The June 2025 PMI has been released, showing a more optimistic look in many ways but still 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