Financial News: UK Construction Sector Downturn Softens In May

UK Construction Sector Downturn Softens In May

06/05/2025 - 05:21:00 (RTTNews)

(RTTNews) - The UK construction sector contracted at a slower pace in May as the fall in new orders hit the slowest in four months, survey data from S&P Global showed on Thursday.

The construction Purchasing Managers' Index posted 47.9 in May, up from 46.6 in April. The indicator suggested the slowest reduction in output volumes since January.

House building was the weakest-performing segment in May amid ongoing reports of subdued demand conditions. Civil engineering also contracted the most in five months. Meanwhile, commercial work dropped at the slowest pace since January.

The survey showed that new work dropped again in May but at the least marked pace in four months. Respondents attributed the fall to delayed decision-making among clients and cutback to capital spending budgets.

Further, firms were reluctant to backfill vacancies amid a lack of new work to replace completed projects and pressure on margins from rising payroll costs. Consequently, employment declined at the fastest pace since August 2020.

Firms reduced their purchasing activity in response to lower workloads. Input buying decreased for the sixth straight month. This resulted in fewer pressures on supplier capacity and a subsequent improvement in delivery times.

On price front, the survey showed that a strong rate of input price inflation continued in May. However, cost pressures continued to drift down from the 26-month high.

Business activity expectations for the year ahead edged up to the highest since December 2024. Positive projections were attributed to hopes of a turnaround in housing market conditions, greater infrastructure work, and the impact of lower borrowing costs on client demand.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Australia Inflation Data Due On Wednesday (03 hr(s), 32 min(s), 55 sec(s) ago)
(RTTNews) - Australia will on Wednesday see Q2 figures for consumer prices, highlighting a modest ...Full Story»

Belgium Economic Growth Slightly Slows In Q2 (10 hr(s), 26 min(s), 55 sec(s) ago)
(RTTNews) - Belgium's economic growth eased modestly in the second quarter of the year, revers ...Full Story»

U.S. Job Openings Decrease Slightly Less Than Expected In June (11 hr(s), 08 min(s), 55 sec(s) ago)
(RTTNews) - The Labor Department released a report on Tuesday showing job openings in the U.S. dec ...Full Story»

U.S. Consumer Confidence Modestly Improves In July (11 hr(s), 16 min(s), 55 sec(s) ago)
(RTTNews) - Consumer confidence in the U.S. saw a modest improvement in the month of July, accordi ...Full Story»

Eurozone Consumers Lower 1-Year Inflation Expectation: ECB Survey (12 hr(s), 19 min(s), 55 sec(s) ago)
(RTTNews) - Euro area households' inflation expectations for the short-term eased in June whil ...Full Story»

Finland GDP Contracts In June (12 hr(s), 25 min(s), 55 sec(s) ago)
(RTTNews) - Finland's economy contracted for the first time in four months in June, Statistics ...Full Story»

Italy Non-EU Trade Surplus Declines In June (12 hr(s), 58 min(s), 55 sec(s) ago)
(RTTNews) - Italy's non-EU trade surplus declined in June as growth in imports outpaced the in ...Full Story»

Austria Manufacturing Activity Contracts At Slower Pace (13 hr(s), 39 min(s), 55 sec(s) ago)
(RTTNews) - Austria's manufacturing activity contracted at a slower pace in July as output ret ...Full Story»