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Latest data from the S&P Global UK Construction PMI showed overall activity falling to 38.2 in May from 39.7 in April, marking a seventeenth consecutive month of contraction and the weakest reading since the pandemic shock of May 2020.<\/p>\n
Outside the pandemic period, the decline was the sharpest recorded since March 2009.<\/p>\n
House building remained the worst-performing sector with a residential activity index of 36.0, while commercial work slipped to 39.0 amid growing client caution. Civil engineering also remained under pressure at 36.2, although the pace of decline eased slightly.<\/p>\n
Contractors reported the fastest fall in new work for six years as project delays, deferred investment decisions and budget cuts reduced tender opportunities. Several firms also cited political and economic uncertainty as factors holding back demand.<\/p>\n
One bright spot emerged from the energy sector, with firms reporting upcoming power network and infrastructure schemes continuing to generate opportunities.<\/p>\n
The deteriorating market led to further job losses and reduced purchasing activity, while supply chain pressures intensified despite weaker demand. Supplier delivery times lengthened for a third consecutive month, with delays reaching their worst level since December 2022 due to international shipping disruption and material shortages.<\/p>\n
Input cost inflation accelerated sharply. Nearly two-thirds of firms reported higher purchasing costs during May, pushing the input prices index to its highest level since June 2022. Fuel surcharges, energy bills and transport costs were cited as the main drivers.<\/p>\n
Tim Moore, Economics Director at S&P Global Market Intelligence, said: \u201cUK construction companies reported a steep downturn in business activity during May, with the speed of contraction accelerating to its fastest for six years.<\/p>\n
\u201cHouse building remained especially subdued, and there were fresh challenges in the construction sector from a considerable softening of commercial activity since April.<\/p>\n
\u201cAnecdotal evidence suggested that economic uncertainty and rising inflation in the wake of the Middle East conflict had triggered the steepest drop in new work since the beginning of the pandemic. Elevated borrowing costs were also reported to have impacted market conditions.<\/p>\n
\u201cFuel surcharges and rapid increases in prices for energy-intensive raw materials continued to be felt across the construction supply chain. Overall purchasing costs rose to the greatest extent since June 2022, while international shipping delays meant that suppliers\u2019 delivery times lengthened for the third month running.<\/p>\n
\u201cConcerns about a prolonged decline in construction order books, alongside unfavourable near-term UK economic prospects, weighed on business optimism in May. This index has fallen sharply since the start of 2026, and confidence levels are now almost as low as those seen ahead of last autumn\u2019s Budget.\u201d<\/p>\n<\/p><\/div>\n