The S&P Global UK Construction PMI rose to 44.7 in July 2026 from 38.4 in June, extending the rebound from May’s six-year low of 38.2. The improvement points to a degree of stabilization following the disruption caused by the outbreak of war in the Middle East, which had weighed heavily on the sector.
Commercial construction remained the most resilient subsector, followed by housing activity and then civil engineering. Overall, new business received by construction firms continued to decline, but at a slower rate than in June, supported by a revival in tender opportunities.
Softer energy and raw material cost inflation also helped conditions, and signs of improvement linked to the Middle East situation supported a modest pickup in orders. As a result, employment in the sector continued to fall, albeit at a reduced pace.
Looking ahead, a larger share of survey respondents expect activity to expand over the coming months than anticipate a downturn, indicating a generally more optimistic outlook.
