FX.co ★ UK Construction Output Falls the Most in Over Five Years

The S&P Global UK Construction PMI decreased to 44.3 in July 2025 from 48.8 in June, indicating the most significant decline in activity since May 2020. This downturn highlights a notable slump at the beginning of the third quarter, largely due to sharp decreases across all major sectors, especially in civil engineering and residential construction. Survey respondents frequently pointed to weaker demand, project delays, and reduced volumes of new business, with nearly 29% reporting a decline in activity. While commercial construction also saw a reduction, the pace was less pronounced. New orders fell for the seventh consecutive month, with companies citing fewer tender opportunities and diminished client confidence. Forecasts for the year showed slight optimism yet remained restrained. The volume of input purchases decreased, and supply chain delays emerged again for the first time in six months. Despite this, cost increases were at their slowest rate since January. Employment levels continued to fall, as firms reduced hiring and reliance on subcontractors. Nonetheless, subcontractor rates stayed high.