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The contraction in activity in the UK construction sector slowed in June, but the forward-looking survey indicators were weaker than in May, data published by S&P Global showed Friday. The UK construction purchasing managers’ index rose to 48.8 points in June from 47.9 in May. Getting closer to the neutral 50-point mark separating growth from contraction, it indicates the pace of decline in the construction sector slowed in June. Demand for construction items softened again in June, S&P highlighted. Further, June data indicated a sharp rise in purchasing costs across the construction sector, with higher prices paid for concrete, insulation and timber. Tim Moore, economics director at S&P Global Market Intelligence, said: ‘Shrinking 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.’ Further, he cautioned: ‘The 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.’ Around 34% of the survey panel expect a rise in output, while 18% expect a fall. A month ago, S&P Global had reported that in May, 39% expected an increase in output and 16% predicted a decline, indicating a deterioration in June compared to May. Business expectations in June had the lowest degree of optimism since December 2022, S&P said. ‘Anecdotal evidence suggested that subdued sales enquiries and worries about the UK economic outlook had weighed on business confidence,’ it added. The UK construction PMI features a panel of 150 construction firms, with responses collected between June 12 and 27. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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