Key Facts
• UK Construction PMI fell to 44.3 in July, down from 48.8 in June.
• This marks the lowest level since May 2020, according to S&P Global.
• The figure was below all economist forecasts compiled by Reuters.
• Residential construction saw a sharp decline, with civil engineering also falling faster.
• Commercial construction, including stores and offices, experienced the smallest decrease.
• Employment in the sector dropped for the seventh consecutive month.
• New orders declined at the second-fastest rate since 2020.
• UK government aims to build 1.5 million homes by mid-2029.
• Builders reported delays, fewer bidding opportunities, and hesitant clients.
• Data was released on August 6, 2025, by S&P Global.
Summary
The UK Construction Purchasing Managers’ Index (PMI) dropped to 44.3 in July, the lowest since May 2020, reflecting a significant slowdown in the sector. Residential construction experienced a sharp decline, while civil engineering also saw an accelerated drop. Commercial construction fared slightly better, with the smallest decrease among sectors. Employment in the industry fell for the seventh consecutive month, and new orders declined at the second-fastest rate since 2020. Builders cited delays, reduced bidding opportunities, and hesitant clients as key challenges. Despite the UK government’s goal to build 1.5 million homes by mid-2029, the current data highlights ongoing struggles in the construction sector.
