UK construction remains under pressure - PMI
By Abigail Townsend
Date: Monday 06 Oct 2025
(Sharecast News) - The UK's construction sector continued to falter in September, a closely-watched survey showed on Monday, although the pace of downturn moderated slightly.
The S&P Global UK construction purchasing managers' index was 46.2 in September, still in contraction but an improvement on August's 45.5. It was the least marked downturn since June.
However, September's print was the ninth consecutive month below 50.0.
A reading below 50.0 indicates contraction, while one above it suggests growth.
All three sub-sectors remained in contraction. Civil engineering was the weakest, with a PMI of 42.9, followed by commercial construction and residential building, at 46.4 and 46.8 respectively.
Respondents cited a lack of new project starts, subdued demand and elevated business uncertainty.
Lower staffing levels were also seen across the sector for the ninth month in a row, the longest period of job shedding since the pandemic.
Tim Moore, economics director at S&P Global Market Intelligence, said: "The UK construction sector faced pressure on multiple fronts as residential, commercial and civil engineering work all continued to decrease at solid rats.
"Business activity expectations for the year ahead were among the lowest since the end of 2022, suggesting that construction companies remained cautious about the near-term outlook and have yet to see a turning point on the horizon."
However, Matt Swannell, chief economic advisor to the EY Item Club, said: "The weakness in the PMI should be taken with a heavy pinch of salt, as it probably reflects downbeat business sentiment rather than a true shift in activity.
"The outlook for the construction sector is mixed. Rising government investment and reforms to increase housebuilding will provide demand with some support. However, ongoing uncertainty around the prospect of further tax rises and policy reforms could cause some private sector projects to be delayed, while businesses continue to grapple with high labour costs."
Data were collected between 11 and 29 September. The PMI is based on responses to surveys sent to a panel of around 150 construction firms.
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