04.09.202508:49:58UTC+00UK Construction Output Drops at Softer Pace

The S&P Global UK Construction PMI experienced an uptick, reaching 45.5 in August 2025, an improvement from July's over five-year low of 44.3, and slightly surpassing market expectations of 45. The deceleration in commercial building contraction provided some balance against more pronounced declines in residential and civil engineering projects. Housing activity suffered its most significant decrease since February, and civil engineering marked its worst performance since October 2020. New orders decreased for the eighth consecutive month, albeit at the slowest rate since January, prompting hiring freezes and a halt in the replacement of exiting employees. Consequently, employment figures saw their steepest decline since May. Purchasing activities dwindled at the quickest rate observed in three months, while supplier delivery times improved. With respect to costs, the inflation of purchasing prices eased to a ten-month low, and output charges experienced their slowest ascent in six months. Looking ahead, the business activity outlook for the coming year remains the most cautious since December 2022, amid ongoing uncertainties and economic challenges.