{"id":162646,"date":"2026-06-04T11:50:22","date_gmt":"2026-06-04T10:50:22","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=162646"},"modified":"2026-06-05T15:04:56","modified_gmt":"2026-06-05T14:04:56","slug":"mays-construction-pmi-highlights-tough-month-for-sector","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/mays-construction-pmi-highlights-tough-month-for-sector\/162646\/","title":{"rendered":"May\u2019s construction PMI highlights a tough month for the sector"},"content":{"rendered":"<h2>May\u2019s construction PMI has revealed that activity slowed at the sharpest pace in six months and saw a steep fall in new work<\/h2>\n<p>May\u2019s construction PMI fell to 38.2 from 39.7 in April, its <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/november-2025-pmi-drops-lowest-since-2020\/157648\/\" target=\"_blank\" rel=\"noopener\">lowest level since May 2020<\/a>, when the COVID-19 pandemic halted \u200bmany projects.<\/p>\n<p>This steep decline comes as economic uncertainty and rising inflation triggered by the Iran \u200bwar led to a steep fall in construction projects<\/p>\n<p>Jordan Smith, regional director at Egis UK, stated: \u201c<a href=\"https:\/\/www.pmi.spglobal.com\/Public\/Home\/PressRelease\/a4b07e6daf8647a784b973cb2bed123e\" target=\"_blank\" rel=\"noopener\">May\u2019s PMI data<\/a> highlights another challenging month for the UK construction sector, with activity declining across all major areas and output falling at its fastest rate outside of the pandemic period since 2009.<\/p>\n<p>\u201cRising energy, fuel and transportation costs are continuing to drive inflationary pressures across the supply chain, while shipping delays and material shortages are creating additional challenges for project delivery.\u201d<\/p>\n<h3>How political conflict impacts UK construction activity<\/h3>\n<p>Building firms in the S&amp;P survey reported site delays, fewer tender opportunities, \u200band a <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/middle-east-clouds-cpa-spring-forecast-2026\/161678\/\" target=\"_blank\" rel=\"noopener\">lack of demand caused by the Middle East conflict<\/a> as well as political uncertainty in Britain.<\/p>\n<p>The pace of decline was greatest for residential housebuilding and smallest for commercial work \u200bsuch as shops and offices.<\/p>\n<p>Construction companies said their costs rose at the fastest \u200bpace since June 2022, after Russia&#8217;s full-scale invasion of Ukraine, driven by rising costs for \u200cfuel, energy \u2060and transport.<\/p>\n<p>Businesses also reported the most widespread delays in shipping times since December 2022, in part due to the closure of the Strait of Hormuz.<\/p>\n<p>\u201cThere\u2019s been every sign that the construction sector is beginning to build stronger momentum recently, so this downturn is disappointing to see,\u201d commented Paul Atkinson, restructuring advisory partner at FRP.<\/p>\n<p>\u201cThe slowdown reflects the continued pressure created by funding costs, competition for work and wider economic uncertainty.\u201d<\/p>\n<h3>Upcoming energy projects raise hopes for increase in productivity<\/h3>\n<p>Despite negative figures plaguing May\u2019s construction PMI, upcoming energy sector and power network projects were viewed as a bright spot for infrastructure work.<\/p>\n<p>\u201cMay\u2019s fall shows the UK\u2019s construction sector is still facing pressures, with elevated energy and fuel costs impacting projects. But below the headline figure, demand is still being supported by a pipeline of infrastructure work in areas such as energy, roads and rail, and water,\u201d said Max Jones, director and head of construction at Lloyds.<\/p>\n<p>&#8220;While ongoing uncertainty weighs on output, many firms are staying focused on current work and planning for future growth.\u201d<\/p>\n<p>He added: \u201cCompanies are also continuing to invest in skills, so they are ready for new opportunities linked to cleaner energy and growing areas of importance such as defence.&#8221;<\/p>\n<h3>There will be more uncertainty over the coming months<\/h3>\n<p>The combination of weakening demand and accelerating cost pressures indicated in the latest PMI reading presents a particularly concerning future for the construction sector.<\/p>\n<p>&#8220;The question increasingly becomes where the impetus for recovery will come from, and whether current interventions are sufficient to restore confidence and unlock investment,&#8221; commented Dr David Crosthwaite, chief economist at BCIS.<\/p>\n<p>&#8220;Against that backdrop, the prospect of further cost pressures from steel tariffs coming into effect in July risks adding another layer of uncertainty to a market that is already struggling to find momentum.&#8221;<\/p>\n<div class=\"mk-custom-module-container\">\n<\/div>","protected":false},"excerpt":{"rendered":"<p>May\u2019s construction PMI has revealed that activity slowed at the sharpest pace in six months and saw a steep fall in new work.<\/p>\n","protected":false},"author":37,"featured_media":162647,"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":[908,974,173310],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-162646","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","10":"tag-projects"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>May\u2019s construction PMI highlights a tough month for the sector<\/title>\n<meta name=\"description\" content=\"May\u2019s construction PMI has revealed that activity slowed at the sharpest pace in six months and saw a steep fall in new work\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/mays-construction-pmi-highlights-tough-month-for-sector\/162646\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"May\u2019s construction PMI highlights a tough month for the sector\" \/>\n<meta property=\"og:description\" content=\"May\u2019s construction PMI has revealed that activity slowed at the sharpest pace in six months and saw a steep fall in new work\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/mays-construction-pmi-highlights-tough-month-for-sector\/162646\/\" \/>\n<meta property=\"og:site_name\" content=\"Planning, Building &amp; 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