Financial News: UK Construction Activity Shrinks At Slowest Pace In

UK Construction Activity Shrinks At Slowest Pace In 4 Months

08/06/2026 - 06:40:00 (RTTNews)

(RTTNews) - The UK construction activity contracted at the slowest pace in four months in July on slower fall in new orders, purchasing managers' survey data from S&P Global showed Thursday.

The construction Purchasing Managers' Index rose to a four-month high of 44.7 from 38.4 in June. However, the index remained below the neutral 50.0 threshold.

Reduced volumes of business activity have been recorded since January 2025, marking the longest continuous period of decline since the global financial crisis.

There were slower rates of contraction in all three main sub-sectors namely commercial work, civil engineering and house building activity.

New business received by companies decreased at the slowest pace in ten months in July. Heightened geopolitical uncertainty and subdued domestic economic conditions continued to weigh on demand.

Employment numbers decreased in July largely due to the non-replacement of voluntary leavers amid a lack of new work.

There was a sustained decrease in purchasing activity and supplier performance improved for the first time in five months.

Input price inflation slowed further near four-year high seen in May. The latest growth in average cost burdens was the slowest since February.

Business activity expectations for the year-ahead remained high and signaled the strongest degree of optimism since February.

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