FX.co ★ UK Construction Output Contracts for 4th Month

The S&P Global UK Construction PMI increased slightly to 46.6 in April 2025, up from 46.4 in March, marking the fourth consecutive month of decline. Industry uncertainty is causing delays in new projects, leading to further decreases in orders and workforce numbers. Civil engineering emerged as the weakest sector with a reading of 43.1, while residential construction showed some resilience, experiencing the smallest decline of 2025 so far at 47.1. Conversely, commercial construction saw a sharp decline at 45.5, reflecting growing concerns over the UK's economic forecast. Purchasing activity decreased at its quickest pace in almost five years, but for the third consecutive month, supplier delivery times showed improvement. Despite reduced demand, cost pressures remained significant due to increasing material and payroll expenses. Although job cuts continued, they showed a marginal slowdown. Encouragingly, business confidence has risen to its highest point since December 2024, fueled by optimism about upcoming residential projects.