UK Construction Continues To Log Sharp Contraction

(RTTNews) - The construction sector logged a sharp contraction in June, survey results from S&P Global showed Monday.

The construction Purchasing Managers' Index registered 38.4 in June, up from May's six-year low of 38.2.

The index remained below the neutral 50.0 mark signaling contraction. Output shrank in each month since January 2025 and the latest fall was the second-fastest since the start of the pandemic.

Commercial activity was the best-performing segment which reported a slower downturn than in the previous month. Meanwhile, housing activity dropped at the sharpest pace in 2026 to date and civil engineering activity declined to the greatest extent since April 2020.

There was another sharp decrease in total new work but the speed of the downturn was the slowest since March. Cutbacks to employment numbers continued across the sector.

Further, pressure on supply chain alleviated due to the softening of demand conditions. Supplier performance deteriorated to the least marked extent since March.

Average cost burdens increased sharply in June with the index signaling the slowest pace of inflation in three months. Business sentiment improved markedly from a six-month low seen in May. However, confidence remained much weaker than the long-run survey average.