5th Nov 2026 10:41
(Alliance News) - UK construction activity contracted at its sharpest pace since June in October, driven by a steep decline in housebuilding, while new car registrations increased in October, according to separate industry figures published Thursday.
The seasonally adjusted S&P Global UK construction purchasing managers' index fell to 43.6 points in October from 46.1 in September, remaining below the 50-point threshold separating growth from contraction for the 22nd consecutive month.
Residential construction was the weakest-performing segment, with its index falling to 35.1 points, the lowest since December 2025, amid rising borrowing costs, weak consumer confidence and economic uncertainty.
Civil engineering activity also declined, with its index at 45.9 points, although the pace of contraction was the slowest since May 2025. Commercial construction registered 46.3, easing from September's 16-month high.
Meanwhile, new orders fell at their sharpest pace since June, while input cost inflation accelerated to a four-month high, driven by rising purchasing prices and supply chain disruption.
Tim Moore, economics director at S&P Global Market Intelligence, said: "October data indicated a setback for the UK construction sector after some signs of stabilisation in the previous month."
He added that business activity declined at its fastest pace since June, reflecting the steepest reduction in residential construction so far this year.
On Wednesday, data showed that the seasonally adjusted UK services purchasing managers' index rose to 52.8 points in October from 52.1 in September. Across the wider UK private sector, the composite output index increased to 52.9 points from 52.0.
On Monday, S&P Global reported that the seasonally adjusted manufacturing PMI climbed to a five-month high of 52.8 points in October from 51.9 in September.
The S&P Global UK Construction PMI is compiled from responses to questionnaires sent to a panel of around 150 construction companies. The responses were collected between October 12 and 29.
Meanwhile, separate figures from the Society of Motor Manufacturers and Traders showed UK new car registrations rose 5.4% annually to 152,730 in October.
Battery electric vehicles accounted for a record 32% of new registrations during the month, supported by increased discounting from manufacturers.
More than 500,000 electric vehicles have been registered so far this year, up 30% annually, although their year-to-date market share of around 27% remains below the 33% target mandated for 2026.
By Eva Castanedo, Alliance News senior economics reporter
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