The S&P Global UK Construction PMI climbed to 46.2 in September 2025 from 45.5 in August, marking its highest point in three months, yet it remains below the 50.0 threshold—indicative of ongoing contraction within the sector. This moderation was predominantly propelled by a deceleration in the decline of new work and residential activity, which registered at 46.8. On the other hand, civil engineering continued to languish at 42.9, maintaining its position as the sector's weakest link, while commercial construction experienced a quicker downturn, sitting at 46.4.
Order books experienced decline for the ninth consecutive month, albeit at the slowest rate during this period, as companies reported subdued demand, client wariness, and mounting uncertainty in anticipation of the Autumn Budget. Employment levels also decreased for the ninth straight month due to ongoing hiring freezes, although some firms took steps to employ apprentices. Meanwhile, input purchasing and delivery times showed marginal improvements, yet cost pressures endured due to elevated energy, wage, and transportation expenses. Business confidence hovered near record lows, with optimism contingent upon prospective infrastructure investments, energy projects, and potential interest rate reductions in the future.
