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
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
