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UK construction activity fell at the fastest pace in five and a half years in November, in the eleventh month of lower construction output, data published by S&P Global showed on Thursday. The headline S&P Global UK construction purchasing managers’ index fell to 39.4 points in November from 44.1 in October. The reading was below the neutral 50-point mark separating growth from contraction for the eleventh month in a row. The rate of decline in total industry activity was the steepest recorded since May 2020. Sub-sector data showed the housing activity, commercial construction and civil engineering all saw the fastest downturns in activity for five and a half years. S&P Global said survey respondents commented on fragile market confidence, delays with the release of new projects and a general lack of incoming new work. Total new business fell as around 44% of the panel reported a drop, while 17% reported an index. Aside from the pandemic, the seasonally adjusted new orders index pointed to the fastest downturn in new work since early 2009. ‘Construction companies commented on sales headwinds due to risk aversion among clients, worries about the UK economic outlook and elevated business uncertainty ahead of the budget,’ S&P Global said. Around 31% of the panel predicted a rise in activity in the year ahead while 25% forecast a decline. The future activity index showed the lowest degree of optimism since December 2022. ‘November data revealed a sharp retrenchment across the UK construction sector as weak client confidence and a shortfall of new project starts again weighed on activity,’ said Tim Moore, economics director at S&P Global Market Intelligence. ‘Total industry activity decreased to the greatest extent for five-and-a-half years, led by steep falls in infrastructure and residential building work. Commercial construction also faced severe headwinds during November as business uncertainty in the run up to the budget pushed clients to defer investment decisions.’ Moore added: ‘Lower workloads, alongside pressure on margins from rising wages and purchasing costs, continued to dampen staff hiring in November. The latest round of job cuts was the most marked since August 2020.’ The construction PMI features a panel of 150 companies in the UK, with responses collected between November 12 and 27. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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