UK construction downturn eases in July
By Michele Maatouk
Date: Thursday 06 Aug 2026
(Sharecast News) - The downturn in the UK construction sector eased in July, according to a survey released on Thursday.
The S&P Global construction purchasing managers' index rose to a four-month high of 44.7 from 38.4 in June. It remained above the 50.0 mark that separates contraction from expansion, however.
The survey found that total new business received by construction companies fell at the slowest pace for 10 months in July. Some firms noted a recent turnaround in tender opportunities, including for commercial development, residential projects and transport infrastructure work.
However, many survey respondents also noted that heightened geopolitical uncertainty and subdued domestic economic conditions continued to weigh on customer demand, S&P said.
Tim Moore, economics director at S&P Global Market Intelligence, said: "July data suggests that the performance of UK construction sector has started to stabilise after a sharp downturn throughout the second quarter of 2026. Business activity levels continued to decline in all three main categories, but in each case the rate of contraction was much slower than in June. This was supported by the weakest reduction in new business intakes since September 2025.
"Survey respondents commented on signs of a turnaround in client demand and a revival in new tender opportunities in some cases, despite subdued underlying market conditions. This contributed to more upbeat business activity expectations for the year ahead, with confidence levels the highest since February.
"A renewed improvement in supplier performance and softer input cost inflation were also positive developments in July. Construction companies widely commented on fuel surcharges and higher raw material prices due to the war in the Middle East, but the overall rate of cost inflation was the lowest for five months."
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