UK Construction Output Falls at Slowest Pace for Three Months

The S&P Global UK Construction PMI rose to 46.2 in September 2025 from 45.5 in August, its highest in three months but still below the 50.0 mark, signaling continued contraction.

The moderation was driven by a slower drop in new work and residential activity (46.8), while civil engineering (42.9) remained weakest and commercial construction (46.4) saw a faster decline.

Order books fell for the ninth straight month but at the slowest pace in that period, as firms cited weak demand, client caution, and uncertainty ahead of the Autumn Budget.

Employment also fell for the ninth month amid hiring freezes, though some firms hired apprentices.

Input buying and delivery times improved slightly, but cost pressures persisted, with higher energy, wage, and transport costs.

Business confidence remained near record lows, with optimism hinging on potential infrastructure spending, energy projects, and future rate cuts.