FX.co ★ UK Construction PMI Rebounds from Multi-Year Low

In January 2026, the S&P Global UK Construction PMI experienced an uptick, reaching 46.4, recovering from December's significant low of 40.1, and surpassing market predictions of 42.0. Despite being the highest reading since June 2025, the index still indicated ongoing contraction in the construction sector. The house building segment remained the most subdued, yet its decline slowed to the mildest pace observed in three months. Meanwhile, there was a pronounced decline in civil engineering activity, whereas commercial construction saw its least severe reduction since May 2025. This was partly attributed to certain firms reporting enhanced clarity following the new Budget and a slight uplift in investment sentiment. Although total new orders decreased, they did so at the slowest rate in three months, hinting at early signs of stabilization. However, employment continued to decrease significantly. On the cost front, input price inflation increased to a four-month high. While business optimism reached its peak since May 2025, confidence remained considerably below the historical average.