7th Jan 2026 10:21
(Alliance News) - UK construction firms experienced another sharp drop in activity in December, but the rate of decline eased, according to survey results published by S&P Global on Wednesday.
The seasonally adjusted S&P Global UK construction purchasing managers' index rose to 40.1 points in December from 39.4 in November, but was below the expected 42.3 points.
The PMI remained below the 50.0 neutral mark separating growth from contraction for the 12th consecutive month, with its second-lowest reading since May 2020.
Tim Moore, S&P Global Market Intelligence's economics director, commented: "UK construction companies once again reported challenging business conditions and falling workloads in December, but the speed of the downturn moderated from the five-and-a-half-year record seen in November. Many firms cited subdued demand and fragile client confidence.
"Despite a lifting of Budget-related uncertainty, delayed spending decisions were still cited as contributing to weak sales pipelines at the close of the year."
Moore noted: "Total new orders nonetheless decreased to a much lesser degree than in November, while business activity expectations for the year ahead rebounded to a five-month high."
S&P Global said approximately 37% of the survey panel predicted that output will increase in the year ahead, while 20% predicted a decline.
"Some survey respondents attributed greater optimism to projections of rising infrastructure spending, especially in the utilities sector," Moore said. "There were also hopes that lower borrowing costs and easing inflationary pressures could boost demand across the construction sector."
The UK construction PMI is compiled by S&P Global from questionnaire responses by a panel of about 150 construction companies.
The data was collected between December 4 and 22.
By Emma Curzon, Alliance News reporter
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