Financial News: UK Construction Downturn Deepens In April

UK Construction Downturn Deepens In April

05/07/2026 - 08:35:00 (RTTNews)

(RTTNews) - The UK construction sector logged a faster contraction in April amid rapid acceleration in cost inflation, survey results from S&P Global showed on Thursday.

The construction Purchasing Managers' Index declined to 39.7 in April from 45.6 in March. The score remained below the neutral 50.0 mark for the sixteenth month in a row. Moreover, output fell at the fastest pace in five months.

Among sectors, civil engineering activity registered the steepest decline, followed by house building. Meanwhile, commercial work showed some resilience.

New business fell at the fastest pace since November 2025 due to subdued demand conditions and a subsequent lack of new work to replace completed projects.

The constructors also highlighted that elevated business uncertainty due to the Middle East conflict had led to longer sales conversion times and fewer tender opportunities.

In line with lower new orders, companies reduced their workforce numbers at the fastest pace in four months. Similarly, they decreased purchasing activity at a sharper rate.

International shipping delays and difficulties importing materials from the GCC region badly impacted the vendor performance, with the lengthening of average lead times being the sharpest since December 2022.

On the price front, input price inflation accelerated to the highest since June as fuel surcharges contributed to a rapid increase in purchasing prices.

Looking ahead, business activity expectations eased and were the least optimistic since November 2025 amid expected growth headwinds during the year ahead from rising inflation and elevated borrowing costs, as well as fragile investment sentiment.

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