UK construction slides again, pulled down by weak housebuilding, PMI shows

September 4, 2026 4:34 AM EDT

A city worker passes a construction site in the City of London during the morning rush hour in London, Britain, June 9, 2026. REUTERS/Chris J. Ratcliffe

Sept 4 (Reuters) - Britain's ‌construction sector ​marked ​its 20th month of contraction in August, dragged down by a severe downturn in the ‌housebuilding sector, a survey showed on Friday.

The ⁠S&P Global UK Construction Purchasing Managers' Index (PMI) fell to 44.3 in ‌August from 44.7 in ‌July, a long way below the 50 threshold for growth. A Reuters poll of economists had ​pointed to a reading of 45.5.

Here are the key points from the survey:

• Housebuilding activity deteriorated ⁠sharply, although the gauges for the commercial and civil engineering sectors improved ​slightly

• "Sluggish demand conditions and low client confidence, combined with anxiety about the impact of the ​Middle East conflict, were again ‌factors contributing to lower workloads across the construction sector," said Tim Moore, economics director ⁠at S&P Global

• Construction firms shed jobs but at the slowest pace since September 2025

• Weakness in the ⁠housebuilding sector underscores the challenge facing Prime Minister Andy Burnham, who ​intends to ramp up the supply of social housing

• PMI gauge of input prices fell to its lowest level since ‌February

• Official gauge of construction output in June stood 2.3% lower than a year ‌ago

• The all-sector PMI, which combines manufacturing, services ⁠and construction data, rose ‌to a six-month ​high of 51.8 in August from 51.6 in July

(Reporting by Andy Bruce; Editing by Hugh ‌Lawson)



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