Financial News: UK Construction Sector Contraction Slowest In 6 Months

UK Construction Sector Contraction Slowest In 6 Months

07/04/2025 - 08:34:00 (RTTNews)

(RTTNews) - UK construction activity declined at the slowest pace since the current period of contraction began in January, survey results from S&P Global showed on Friday.

The headline construction Purchasing Managers' Index rose to 48.8 in June from 47.9 in May. The expected score was 48.6. Any reading below 50.0 indicates an overall reduction in construction activity.

There were accelerated rates of contraction in the commercial and civil engineering segments. Commercial work fell at the fastest pace since May 2020 due to subdued economic conditions and cutbacks to investment spending.

Civil engineering posted the sixth straight decline and became the weakest performing area of the construction sector. House building was the only category to expand in June. Residential activity grew for the first time since September 2024.

New order books declined at a faster pace since May on fewer tender opportunities and intense competition. In tandem with falling new work, companies reduced their staffing numbers.

Reduced purchasing activity has been recorded consistently since December 2024. Meanwhile, supplier performance improved to the greatest extent since June 2024.

Overall cost inflation eased for the third straight month and was the lowest since January.

The degree of optimism among managers reached the lowest since December 2022. Subdued sales enquiries as well as worries about the UK economic outlook weighed on business sentiment.

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