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But contraction in civil engineering and commercial work saw the bellwether S&P Global UK Construction Purchasing Managers\u2019 Index drop below the standstill 50 mark again in June for the six month in a row.<\/p>\n
At 48.8 in June the index was up from 47.9 in May and signalled the slowest decline in construction output since the current period of contraction began in January.<\/p>\n
House building expanded with a score of 50.7 while civil engineering (44.2)\u00a0 was the weakest-performing area of construction activity as commercial work decreased at the fastest pace since May 2020 (index at 45.1).<\/p>\n
New order books across the construction sector as a whole deteriorated for the sixth successive month in June, with the rate of decline accelerating since May.<\/p>\n
Survey respondents commented on fewer tender opportunities and intense competition for new work, reflecting weak overall demand conditions and heightened risk aversion among clients.<\/p>\n
Tim Moore, Economics Director at S&P Global Market Intelligence, said: \u201cJune data highlighted a sustained downturn in UK construction output, albeit at the slowest pace in six months.<\/p>\n
\u201cShrinking workloads in the commercial and civil engineering segments weighed on total industry activity. Commercial activity fell at the sharpest rate in just over five years.<\/p>\n
\u201cOn a brighter note, house building was the best-performing area of the construction sector. Higher levels of residential work were recorded for the first time since September 2024 amid some reports of more stable demand conditions.<\/p>\n
\u201cThe forward-looking survey indicators were weaker than in May. Total new orders fell at a faster pace as many construction companies signalled reduced overall workloads due to unfavourable domestic economic conditions and fragile confidence among clients.<\/p>\n
\u201cAt the same time, business activity expectations dipped to a two-and-a-half-year low in June. Survey respondents widely cited fewer tender opportunities, rising competition for new work and a projected headwind from subdued business investment during the year ahead.\u201d<\/p>\n<\/p><\/div>\n