Slump for UK builders abates in July, PMI shows

The downturn in Britain's construction industry eased in July as commercial building and housebuilding weakened less sharply and builders ​turned the most optimistic since before the Iran war ‌started, a survey by S&P Global showed.

The S&P Global UK Construction Purchasing Managers' Index (PMI) stood at 44.7 in July, jumping from 38.4 in June ​to well above the 40.0 median forecast in a Reuters ​poll of economists. The 50-mark separates growth from contraction.

The downturn in Britain's construction industry eased in July as commercial building and housebuilding weakened less sharply and builders ​turned the most optimistic since before the Iran war ‌started, a survey by S&P Global showed.

The S&P Global UK Construction Purchasing Managers' Index (PMI) stood at 44.7 in July, jumping from 38.4 in June ​to well above the 40.0 median forecast in a Reuters ​poll of economists. The 50-mark separates growth from contraction.

"July ⁠data suggests that the performance of the UK construction sector ​has started to stabilise after a sharp downturn throughout the second ​quarter of 2026," said Tim Moore, economics director at S&P Global Market Intelligence.

The commercial activity index was the highest in four months, rising to 46.8 ​in July from 41.5 in June

Housebuilding declined at the slowest pace ​since October 2025

While civil engineering showed the steepest pace of decline among the ‌PMI's ⁠main sub-categories, the downturn eased from the more than six-year low in June

S&P's gauge of new orders was the highest since September 2025, signalling a slower decline in demand

Employment fell for the ​19th month in ​a row, though ⁠at the slowest pace since February, before the Iran war began

Subcontractor availability grew at the fastest ​pace since April 2025

A gauge of input costs ​eased to ⁠69.8 from 77.9, slowing for the second straight month after May's near four-year high of 83.5

Construction firms turned the most upbeat about ⁠the ​coming 12 months since February

The composite PMI, ​which includes services and manufacturing firms, rose to 51.6 from 48.4, the highest in ​five months


-Reuters