UK construction output declined for the sixth consecutive month in June, despite a slight rebound in house building, according to the latest S&P Global UK Construction PMI® data. The index rose to 48.8, up from 47.9 in May, indicating a slower contraction. However, any reading below 50.0 signals overall decline.
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Residential construction showed marginal growth, reaching 50.7 — its first expansion since September 2024. Yet, commercial construction activity fell sharply to 45.1, marking its steepest drop since May 2020. Civil engineering output continued to weaken, with a reading of 44.2, making it the worst-performing segment.
New orders fell for the sixth month in a row, with firms citing limited tender opportunities, increased competition, and client caution due to economic uncertainty. Employment and purchasing activity also declined, although the latter fell at the slowest rate since January.
Input prices rose sharply in June, particularly for concrete, insulation, and timber, though overall cost inflation eased for the third consecutive month.
Business sentiment dropped to its lowest level since December 2022, with only 34% of firms expecting output to rise over the next year. Tim Moore of S&P Global noted that 'forward-looking indicators were weaker than in May', reflecting fragile demand conditions.
Source: www.globalwood.org