{"id":164480,"date":"2026-08-06T11:07:19","date_gmt":"2026-08-06T10:07:19","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=164480"},"modified":"2026-08-06T11:07:19","modified_gmt":"2026-08-06T10:07:19","slug":"uk-construction-decline-slows-for-first-time-four-months","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/uk-construction-decline-slows-for-first-time-four-months\/164480\/","title":{"rendered":"UK construction decline slows for the first time in four months"},"content":{"rendered":"

The UK construction sector continued to contract in July, but the pace of decline slowed to its weakest level in four months, according to S&P Global\u2019s latest construction PMI<\/a><\/h2>\n

The S&P Global UK Construction PMI rose to 44.7 in July from 38.4 in June, marking the highest reading since March.<\/p>\n

However, the index remained below the 50.0 threshold that separates growth from contraction, representing the longest continuous period of decline<\/a> since the global financial crisis.<\/p>\n

Paul Atkinson, restructuring partner at FRP Advisory, said: \u201cIt seems the sector is beginning to find firmer footing<\/a> after prolonged uncertainty.<\/p>\n

\u201cWhile the sector has some way to go before entering expansion, businesses are becoming much better at managing the challenging operating environment, with supply chains proving more resilient and cost pressures easing compared with previous years.\u201d<\/p>\n

Three main construction categories recorded slower rates of contraction<\/h3>\n

All three main construction categories showed slower rates of contraction in July. Commercial work posted an index reading of 46.8, demonstrating the strongest performance among the subsectors.<\/p>\n

Civil engineering activity registered the steepest decline at 38.3, while house building activity fell at the slowest pace since October 2025 with an index reading of 41.8.<\/p>\n

New orders declined at the slowest rate in 10 months during July. Some companies reported a recent turnaround in tender opportunities for commercial development, residential projects and transport infrastructure work.<\/p>\n

\u201cDemand for major infrastructure and civil engineering work remains healthy, supported by investment in areas such as regulated utilities, defence and transport,\u201d stated Max Jones, director and head of construction at Lloyds.<\/p>\n

\u201cMany firms are continuing to look for opportunities to grow, leaving the sector well placed to benefit as the government’s renewed focus on transport and infrastructure investment takes shape.\u201d<\/p>\n

The outlook is positive for the UK construction sector<\/h3>\n

Purchasing activity declined at the slowest rate since September 2025. Reduced demand for construction products and materials, combined with fewer transportation delays, led to improved supplier performance for the first time in five months.<\/p>\n

Input price inflation eased to a five-month low, down from May\u2019s near four-year high. Companies reporting higher costs linked the increases to fuel surcharges and rising raw material prices.<\/p>\n

Business activity expectations for the year ahead remained positive, with approximately 38% of respondents predicting expansion and 17% anticipating decline. This marked the strongest level of optimism since February.<\/p>\n

Jones commented: \u201cA further improvement this month suggests confidence is rising across the sector. Businesses continue to invest and plan for growth, supported by some improvements in economic conditions. While project funding is largely in place, the scale and complexity of planned works mean that momentum is expected to build steadily over time.\u201d<\/p>\n

Atkinson added: \u201cIt seems the sector is beginning to find firmer footing after prolonged uncertainty. While the sector has some way to go before entering expansion, businesses are becoming much better at managing the challenging operating environment, with supply chains proving more resilient and cost pressures easing compared with previous years.\u201d<\/p>\n

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

The S&P Global UK Construction PMI rose to 44.7 in July from 38.4 in June, marking the highest reading since March.<\/p>\n","protected":false},"author":37,"featured_media":164481,"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-164480","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":"\nUK construction decline slows for the first time in four months<\/title>\n<meta name=\"description\" content=\"The S&P Global UK Construction PMI rose to 44.7 in July from 38.4 in June, 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