Financial News: UK Construction Sector Contracts Most Since 2020

UK Construction Sector Contracts Most Since 2020

06/04/2026 - 06:38:00 (RTTNews)

(RTTNews) - The UK construction sector shrank at the fastest pace in six years in May amid shrinking order books and rising economic uncertainty, survey data from S&P Global showed Thursday.

The construction Purchasing Managers' Index unexpectedly fell to 38.2 in May from 39.7 in the previous month. The reading was seen at 40.4.

The index fell below the neutral 50.0 threshold for the seventeenth straight month in May.

All three broad categories of construction work registered sharp declines in output in May. Residential activity reported the weakest-performing segment as market conditions remained unfavorable and borrowing costs stayed elevated.

Commercial construction reported a steeper reduction in output levels in May. Meanwhile, civil engineering work dropped at a slightly less marked rate than in April.

Total new orders decreased the most in six years. Construction companies suggested that project delays, deferred investment decisions and general cutbacks to clients' budgets had all resulted in fewer tender opportunities.

A decline in new orders resulted in lower employment numbers and led to another fall in input buying. Purchasing activity dropped at the fastest pace since November 2025.

Suppliers' delivery times lengthened for the third straight month and the downturn in vendor performance was the sharpest since December 2022.

On the price front, data showed that input prices increased at the fastest pace since June 2022. Subcontractor charges grew the most in nearly three-and-a-half years.

Business activity expectations for the next twelve months remained positive in May but the degree of optimism eased to the second-lowest since December 2022.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Thai Central Bank Holds Rate At 1.0% (01 hr(s), 37 min(s), 03 sec(s) ago)
(RTTNews) - The Bank of Thailand decided to leave its interest rate unchanged on Wednesday as the ...Full Story»

Brazil FGV Consumer Confidence Falls Marginally To 88.7 (02 hr(s), 57 min(s), 03 sec(s) ago)
(RTTNews) - Confidence among Brazilian consumers decreased for the second straight month in June, ...Full Story»

Slovenia Manufacturing Confidence Rises Slightly In June (03 hr(s), 10 min(s), 03 sec(s) ago)
(RTTNews) - Slovenia's industrial sentiment remained slightly less negative in June, figures f ...Full Story»

Iceland Producer Price Inflation Highest Since July 2022 (03 hr(s), 32 min(s), 03 sec(s) ago)
(RTTNews) - Iceland's industrial producer price inflation accelerated further in May to the hi ...Full Story»

German Ifo Business Confidence Strengthens (04 hr(s), 03 min(s), 03 sec(s) ago)
(RTTNews) - German business sentiment improved in June as firms perceived the current business env ...Full Story»

Taiwan Industrial Output Growth Eases; Retail Sales Rise Further (04 hr(s), 30 min(s), 03 sec(s) ago)
(RTTNews) - Taiwan's industrial production growth moderated for the second straight month in M ...Full Story»

Czech Economic Sentiment Improves In June (04 hr(s), 57 min(s), 03 sec(s) ago)
(RTTNews) - The Czech economy's confidence strengthened in June after weakening to a 10-month ...Full Story»

Poland Jobless Rate Falls To 5.9% In May (05 hr(s), 15 min(s), 03 sec(s) ago)
(RTTNews) - The unemployment rate in Poland decreased further in May to the lowest level in five m ...Full Story»