The S&P Global UK Construction PMI experienced an uptick, reaching 48.8 in June 2025, a rise from 47.9 in May. Despite this increase, the index remains below the critical 50.0 mark that delineates expansion from contraction. Within the sector, residential construction witnessed a subtle return to growth, recording a figure of 50.7. However, this positive performance was overshadowed by sharper declines observed in both commercial and civil engineering activities, which registered at 45.1 and 44.2, respectively.
New orders experienced a decline for the sixth consecutive month, attributed by firms to subdued demand, a reduction in tenders, and guarded spending by clients. Business confidence took a downturn, hitting its lowest point since December 2022. Concurrently, employment continued to wane as companies focused on cost-reduction strategies. While purchasing activity declined, it did so at the slowest rate observed in the past five months, and there was an improvement in supplier performance. In terms of input costs, inflation persisted yet eased to its gentlest rate since January.
