Latest construction activity from firms survey

Construction activity declined for the fourth month in a row in April, albeit at the slowest rate for three months, according to the latest update to the 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 46.6 in April, slightly up from 46.4 in March. Anything above 50 signifies an overall increase in activity; anything below 50 represents a decrease.

Dr David Crosthwaite, BCIS Chief Economist, said: ‘Another set of disappointing data for the construction sector. A lack of confidence and increasing uncertainty are really weighing heavily on investment decisions. The worry is that there doesn’t really seem to be any light at the end of the tunnel.’

At a sector level, commercial work decreased for the fourth month running, with the fastest pace of decline since May 2020. Respondents pointed to heightened business uncertainty as well as risk aversion and economic concerns among clients. Residential activity declined again, though at a slower pace than has been seen in 2025 so far, with reports of weak demand conditions and client spending hesitancy.

Civil engineering saw the weakest activity level, with lower output attributed to a lack of new work to replace completed projects.

S&P Global also reported:

• The second-fastest reduction in total new work since May 2020, amid economic concerns and client decision-making delays.
• Improved vendor performance, although still some reports of international shipping delays.
• Suppliers have sought to pass on increased payroll costs.
• Staffing numbers decreased for the fourth consecutive month, with subdued demand and rising pay pressures cited in the non-replacement of leavers.
• 41% foresee a rise in output in the next 12 months, 18% predict a decline.
• 37% experienced a rise in input costs, just 2% a decline, largely linked to rising raw material prices and the passing on of wage inflation.
• A reduction in sub-contractor usage, increase in sub-contractor availability, and increase in rates charged by sub-contractors.

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^{(1)  S&P Global UK Construction Purchasing Managers’ Index  - here}