Finance
UK construction downturn eases as house-building improves, commercial work tanks
Published by Global Banking & Finance Review®
Posted on July 4, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 4, 2025
2 min readLast updated: January 23, 2026
UK construction shows slight recovery in June with house-building growth, but commercial activity declines due to economic concerns.
By Andy Bruce
MANCHESTER, England (Reuters) -The downturn in Britain's construction industry abated slightly in June as homebuilding returned to growth, but commercial building activity tumbled thanks to mounting worries about the economy, a survey showed on Friday.
The S&P Global UK Construction Purchasing Managers' Index rose to 48.8 from 47.9 in May, a six-month high but still below the 50 threshold denoting growth. A Reuters poll of economists had pointed to a reading of 48.4.
The survey showed a split picture of Britain's construction market. Housing activity expanded for the first time since September but the commercial sector contracted at the fastest rate since mid-2020, during the onset of the COVID-19 pandemic.
"Total new orders fell at a faster pace as many construction companies signalled reduced overall workloads due to unfavourable domestic economic conditions and fragile confidence among clients," said S&P Global economics director Tim Moore said.
The survey showed business activity expectations sank in June to the lowest level since December 2022.
PMI data earlier in the week showed a faster-than-expected upturn in the dominant services sector, while manufacturing continued to contract.
The all-sector PMI rose to 51.7 in June from 50.0 in May, its highest level since October.
(Reporting by Andy Bruce; Editing by Hugh Lawson)
The downturn in Britain's construction industry eased slightly in June as homebuilding returned to growth.
The index rose to 48.8 in June from 47.9 in May, marking a six-month high but still below the 50 threshold indicating growth.
The commercial sector contracted at the fastest rate since mid-2020, indicating significant challenges in that area.
Total new orders fell at a faster pace due to unfavorable domestic economic conditions and fragile confidence among clients.
The all-sector PMI rose to 51.7 in June from 50.0 in May, its highest level since October, suggesting a slight overall improvement.
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