6th Nov 2025 09:45
(Alliance News) - UK construction activity fell at the fastest pace for over five years in October, in the longest period of continuous decline since the global financial crisis, data published by S&P Global showed on Thursday.
The headline S&P Global UK construction purchasing managers' index fell to 44.1 points in October from 46.2 in September. The reading was below the neutral 50-point mark separating growth from contraction for the tenth consecutive month.
The rate of decline in total industry activity was the steepest recorded since May 2020.
Civil engineering remained the weakest segment in October, with a reading of 35.4. Survey respondents cited a lack of new work to replace completed projects, S&P Global said.
Residential work fell "markedly" with a reading of 43.6, while commercial building activity was little-changed from September at 46.3.
S&P Global said many construction companies noted "sluggish market conditions, fewer tender opportunities and delays with the release of new projects".
The rate of job shedding was the steepest for just over five years.
Business activity expectations for the year ahead were positive overall in October. About 34% of the panel predicted a rise in output while 20% forecast a reduction. Business optimism edged up to its highest since July, but remained at a historically subdued level.
"Reduced workloads were again widely attributed to risk aversion and delayed decision-making among clients, which contributed to a slower-than-expected release of new projects. Subdued demand in the wake of heightened political and economic uncertainty also led to the steepest drop in input buying since May 2020," said Tim Moore, economics director at S&P Global Market Intelligence.
"Looking ahead, business activity expectations for the coming 12 months remained much weaker than the long-run survey average, largely due to worries about fragile investment sentiment and weak sales pipelines. However, overall optimism levels edged up to the highest since July as the prospect of lower borrowing costs reportedly helped to boost demand projections."
The construction PMI features a panel of 150 companies in the UK, with responses collected between October 9 and 30.
By Michael Hennessey, Alliance News reporter
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