5th Feb 2026 09:45
(Alliance News) - The slowdown in UK construction activity decelerated in January, survey results from S&P Global showed on Thursday.
The Hamburg Commercial Bank construction purchasing managers' index rose to 46.4 points in January from 40.1 in December. Climbing further towards the neutral 50-point mark separating growth from contraction, it indicates the decline in activity in the UK construction sector slowed.
The PMI was at its highest since last June, meaning the reduction in total industry activity was at its least since then.
The pace of job cuts moderated as supply conditions ameliorated in January. Total new work fell by the least extent for three months.
House building was the weakest performing segment in January, however the pace of contraction eased to its slowest for three months, S&P Global noted.
Business optimism rose to its highest level since May 2025, although confidence was still "well below" the long-run survey average, S&P Global highlighted.
Tim Moore, economics director at S&P Global Market Intelligence, said: "Firms are becoming more hopeful that new projects will get back on track in 2026."
He added: "Construction companies noted subdued underlying demand due to fragile client confidence and elevated risk aversion, but there were some reports of improving investment sentiment and greater sales enquiries at the start of the year. As a result, business activity expectations rebounded to an eight-month high, while the pace of job losses moderated.
"Supply conditions improved again in January. Lead times for the delivery of construction items shortened for the sixth month in a row and subcontractor availability increased at a solid pace. However, margins were under pressure as higher wages and raw material prices led to the sharpest rise in purchasing costs since September 2025."
The HCOB construction PMI is compiled by S&P Global from responses collected between January 12 and 29 from 150 construction firms in the UK.
By Tom Budszus, Alliance News slot editor
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.