London, United Kingdom. Britain’s construction sector contracted sharply again in June, although the downturn eased slightly from May’s six-year low as commercial building activity weakened less, an S&P Global survey showed.
The S&P Global UK Construction Purchasing Managers’ Index rose to 38.4 in June from 38.2 in May, remaining below the 50-point threshold that separates growth from contraction.
Commercial activity and demand
The commercial activity index improved in June but remained among its weakest readings since the pandemic.
The new orders index reached a three-month high, indicating that demand continued to decline sharply, although at a slower pace.
“A number of survey respondents suggested recent new contract awards and an expected improvement in broader market conditions had underpinned optimism,” said Tim Moore, economics director at S&P Global Market Intelligence.
House building and civil engineering
House building recorded its sharpest decline of 2026 so far.
Civil engineering fell at its steepest rate since April 2020, with respondents citing delayed infrastructure work and fewer public sector tenders.
Employment and costs
Employment declined for an 18th consecutive month, while subcontractor availability improved at the fastest pace since April 2025.
Cost pressures eased, with the input prices index falling from May’s near four-year high.
