Britain’s construction sector contracted again in September, although the pace of decline eased to its slowest level since January as the downturn in housebuilding moderated, according to an industry survey released Tuesday.
The S&P Global Purchasing Managers’ Index for the UK construction sector rose to 46.1 in September from 44.3 in August, marking its highest reading in eight months. However, the index remained below the 50-point threshold separating growth from contraction, extending the sector’s downturn that began in January 2025.
Tim Moore, economics director at S&P Global Market Intelligence, said construction firms continued to face subdued demand, while clients took longer to make decisions on major projects.
New orders also weakened during the month, with the index falling to 45.9 from 47.7 in August, its lowest level in three months. S&P Global attributed the decline to weak demand, geopolitical tensions and rising input costs.
Input price growth slowed to its lowest level since the outbreak of the Iran war in February. However, Moore warned that the moderation could be temporary as higher energy costs are expected to put renewed pressure on businesses.
Firms also became less optimistic about future construction activity, with expectations falling to their weakest level since May.
The latest official data showed that construction output in Britain was 1.0% lower in the second quarter of 2026 than a year earlier.
Housebuilding remained the weakest-performing segment of the construction industry in September, followed by civil engineering, while commercial construction recorded only a slight decline.
Meanwhile, S&P Global’s all-sector PMI, which combines activity across the services, manufacturing and construction sectors, fell to 51.5 in September from 51.8 in August, its lowest reading in three months.
Goodness Anunobi
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