UK Construction Activity Falls to Lowest Level Since 2020
The S&P Global construction PMI fell to 38.2 in May as rising inflation and geopolitical conflict reduced demand for new projects. Residential housebuilding saw the sharpest decline while firms reported the highest cost increases since 2022 due to rising fuel and energy prices.
United Kingdom construction activity fell to 38.2 in May as economic uncertainty and inflation triggered by conflict led to a steep decline in new work. The reading missed the median economist forecast of 40.2 and remains well below the 50.0 threshold that separates growth from contraction. Building firms reported site delays and fewer tender opportunities as the sector marked its lowest activity level since May 2020.
### Sector Declines and Supply Disruptions The S&P Global Inc construction PMI dropped from 39.7 in April, indicating a deepening downturn that has persisted since the start of 2025. The pace of decline was greatest for residential housebuilding and smallest for commercial work such as shops and offices. Building firms attributed the lack of demand to the Middle East conflict and domestic political uncertainty.
