Construction output in August fell for the eighth successive month, weighed by marked reductions in housing and civil engineering, information from S&P Global UK Construction PMI exhibits.
At the identical time, agency’s projections for enterprise for the yr forward have been the least upbeat in additional than two-and-a-half years.
S&P Global Market Intelligence economics director Tim Moore says that “elevated enterprise uncertainty and worries about broader prospects for the UK economic system,” have been behind the gloomy outlook firms held.
The survey says that in whole trade exercise registered a mark of 45.5 in August, up from 44.3 in July, which was the bottom studying in simply over 5 years. A mark above 50 signifies progress.
Housing work posted a decline of 44.2, whereas civil engineering was the worst performing sector, at 38.1, with enterprise exercise on this space falling on the quickest tempo since October 2020.
New orders throughout the entire of the trade fell for the eighth month operating in August, though the speed of decline eased to the least marked since January.
“Construction firms broadly commented on difficult market circumstances, intense value competitors and headwinds from sluggish UK financial exercise,” the research says.
The survey highlighted a renewed weakening in enterprise optimism throughout the development sector.
Around 34% of companies predict an increase in output through the yr forward, whereas 22% forecast a discount. The lowest diploma of confidence since December 2022.
Moore provides: “Construction exercise has decreased all through the year-to-date, which is the longest steady downturn since early 2020.
“August information signalled solely a partial easing within the pace of decline after output fell on the quickest tempo for over 5 years in July.
“Sharply decreased ranges of housing and civil engineering exercise have been once more the primary causes for a weak total development sector efficiency.”
Bloom Building Consultancy director Gareth Belsham says: “Things have gone from dangerous to worse for housebuilders, with residential development output falling at its quickest charge since February.
“Official information from the ONS ranked development because the fastest-growing sector of the economic system within the second quarter of 2025, however the PMI information suggests momentum is patchy at greatest.
“Most worrying of all is the slowing pipeline of latest work. New orders have fallen for eight months in a row, and whereas contractors are inclined to ebook initiatives months prematurely, even large names are beginning to see their order books scaling down.
But Belsham provides: “There are a number of glimmers of hope. Last month’s discount within the Bank of England base charge ought to convey some reduction to contractors grappling with excessive ranges of debt, and make finance extra inexpensive for builders.
“And whereas Deputy Prime Minister Angela Rayner’s plan to get 1.5 million new houses constructed by 2029 is prone to be a part of Whitehall’s rising record of Quixotic housebuilding targets, the steadiness of the industrial development sector is welcome.”
