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UK construction activity was better than expected in May, as its decline slowed, survey results from S&P Global showed on Thursday. The construction purchasing managers’ index improved to 47.9 points in May from 46.6 in April, moving closer to the neutral 50-point mark separating growth from contraction. The May reading was better than the FXStreet-cited market consensus of 47.2 points. S&P said house building was the weakest-performing segment in May, while the downturn in residential construction accelerated since April amid ongoing reported subdued demand conditions. ‘Business activity expectations for the year ahead edged up to the highest since December 2024,’ S&P said. ‘Around 39% of the survey panel forecast a rise in output levels, while 16% predict a decline. 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. This was balanced against concerns about the general UK economic outlook and the negative impact of rising business uncertainty on sales pipelines.’ Tim Moore, economics director at S&P Global Markets Intelligence, added: ‘Rising wages, squeezed margins and subdued demand weighed on construction employment, despite a brighter outlook for business activity. Job shedding was the steepest since August 2020, while subcontractor usage decreased to the greatest extent for five years.’ The PMI survey draws upon a panel of 150 construction firms in the UK, with responses collected between May 12 and 29. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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