FX.co ★ UK Construction Activity Falls the Most in 5 Years

The S&P Global UK Construction PMI decreased to 44.1 in October 2025 from 46.2 in September, falling short of market expectations of 46.7. This decline marks the tenth consecutive month of contraction in the British construction sector and represents the most significant downturn since May 2020. Construction companies cited challenging market conditions and a reduction in tender opportunities. As a result, employment in the sector saw its largest drop in over five years, alongside a decrease in the use of subcontractors. The declining demand has also led to a reduction in the cost of input materials. Civil engineering projects experienced a significant drop from the previous month's level of 35.4, with respondents noting a lack of new work to replace completed projects. There were also declines in residential construction (43.6) and commercial building activity (46.3).