Latest construction activity from firms survey

Construction activity downturn holds as uncertainty erodes new work pipeline

UK construction activity declined for the sixteenth consecutive month in April 2026, showing the weakest reading in five months, according to the latest S&P Global UK Construction Purchasing Managers’ Index (PMI) ⁽¹⁾.

The PMI, which tracks changes in the volume of business activity through a monthly survey of around 150 construction firms, registered 39.7 in April, down from 45.6 in March. A reading above 50 indicates growth in activity, while a reading below 50 signals contraction.

Total new business contracted at the sharpest rate since November 2025, with survey respondents citing subdued demand and an insufficient flow of new work to replace completed projects in April.

Heightened business uncertainty linked to conflict in the Middle East also reportedly lengthened sales conversion times and reduced tendering opportunities.

Dr David Crosthwaite, chief economist at BCIS, said: ‘While unsurprising, the latest results of S&P’s survey are alarming and reveal just how exposed the construction sector remains to ongoing uncertainty. Although business sentiment over the next 12 months is still broadly positive, optimism is understandably beginning to wane.

‘Businesses have weathered similar conditions before and, in some respects, are better prepared to cope with the pressures of input cost inflation and subdued demand. However, there is only so much risk the industry can absorb. Prolonged uncertainty will continue to undermine client confidence and weaken investment appetite, eroding the pipeline of future work and threatening longer-term growth prospects.’

At a sector level, civil engineering recorded the steepest decline in activity in April, followed by housebuilding, then commercial work.

Business activity expectations were also the least optimistic since November 2025, while April recorded the fastest overall rate of cost inflation since June 2022.

The pace of job shedding was the steepest for four months. Softer order books reportedly contributed to a sustained downturn in staffing levels while a number of firms noted the non-replacement of voluntary leavers due to fewer project starts and strong wage pressures.

S&P Global also reported:

• Accelerated decline in purchasing activity overall
• Some advance purchasing of raw materials due to concerns about escalating costs and potential disruptions
• Deteriorated vendor performance
• Sharpest lengthening of lead times since December 2022
• 69% of respondents reported a rise in input costs; 2% signalled a decline
• Greatest increase in average subcontractor prices in three years

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^{(1) S&P Global UK Construction PMI  - here}