The S&P Global UK Construction PMI slipped to 43.6 in October 2026 from 46.1 in September, undershooting expectations of 46.1 and indicating the steepest contraction in construction activity since June. Residential building remained the weakest area, with its index dropping to 35.1 — the lowest reading since December 2025 — as low consumer confidence and rising borrowing costs weighed heavily on demand. In contrast, civil engineering (45.9) and commercial construction (46.3) proved relatively more resilient, though both still signaled decline.
Total new orders registered their fastest fall since June amid subdued market conditions and fragile client demand, despite some firms reporting better order books driven by infrastructure projects. Purchasing activity also contracted sharply, while supplier delivery times lengthened at the quickest rate since May, reflecting low inventory levels and transport disruptions.
At the same time, input cost inflation quickened to a four-month high, driven by fuel surcharges and higher energy prices. Looking ahead, firms remained wary, with business confidence slipping to its lowest level since May.
