The S&P Global UK Construction PMI inched up to 38.4 in June 2026 from 38.2 in May, remaining below market expectations of 40, even as business sentiment reached its strongest level since March. Commercial construction was the most resilient segment, while both housebuilding and civil engineering recorded steep declines.
Overall new work continued to fall, weighed down by fewer residential projects, subdued business investment, and intense competition for contracts, despite firmer demand in the defence and energy sectors. Employment decreased for the 18th consecutive month, accompanied by a marked drop in the use of subcontractors.
Softer demand helped to ease supply chain pressures, resulting in fewer delivery delays and higher inventories, although supplier performance has worsened compared with March. At the same time, cost pressures strengthened, reflecting rising raw material, wage, and transport costs.
Looking ahead, 38% of firms expect activity to increase, while 19% foresee a decline, with optimism underpinned by a pipeline of forthcoming public-sector and infrastructure projects.
