UK construction output falls at fastest pace in six years in May
By Michele Maatouk
Date: Thursday 04 Jun 2026
(Sharecast News) - UK construction output fell in May at the fastest pace in six years, according to a survey released on Thursday.
The S&P Global construction purchasing managers' index fell to 38.2 from 39.7 in April, coming in below the 50.0 mark that separates contraction from expansion for the 17th month in a row.
It was also the steepest rate of contraction since May 2020. Aside from the drop in construction output at the start of the pandemic, the latest fall was the fastest since March 2009, S&P said.
All three broad categories of construction work posted sharp declines in output, with residential activity the weakest-performing segment and survey respondents pointing to unfavourable market conditions and headwinds from high borrowing costs.
Tim Moore, economics director at S&P Global Market Intelligence, said: "House building remained especially subdued, and there were fresh challenges in the construction sector from a considerable softening of commercial activity since April.
"Anecdotal evidence suggested that economic uncertainty and rising inflation in the wake of the Middle East conflict had triggered the steepest drop in new work since the beginning of the pandemic. Elevated borrowing costs were also reported to have impacted market conditions.
"Fuel surcharges and rapid increases in prices for energy-intensive raw materials continued to be felt across the construction supply chain. Overall purchasing costs rose to the greatest extent since June 2022, while international shipping delays meant that suppliers' delivery times lengthened for the third month running."
Moore said concerns about a prolonged decline in construction order books, along with unfavourable near-term UK economic prospects, weighed on business optimism last month.
"This index has fallen sharply since the start of 2026, and confidence levels are now almost as low as those seen ahead of last autumn's Budget," he said.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN