| Actual | Previous | |
| Index | 39.7 | 45.6 |
Highlights
The UK construction sector experienced a severe deterioration in April 2026, with the construction PMI falling sharply to 39.7, signalling the steepest contraction in activity since November 2025. The downturn reflects weakening demand conditions, heightened geopolitical uncertainty, and intensifying cost pressures that are collectively constraining sectoral recovery.
Civil engineering emerged as the weakest-performing segment, while housebuilding and commercial construction also recorded substantial declines, indicating that the slowdown is broad-based rather than isolated. The sharp fall in new business suggests that firms are struggling to replenish project pipelines amid delayed investment decisions and reduced tender opportunities. Concerns surrounding the Middle East conflict appear to have amplified uncertainty, prolonging sales cycles and weakening investor confidence.
At the same time, inflationary pressures intensified considerably. Input cost inflation accelerated to its strongest level since June 2022, driven by fuel surcharges, transportation costs, wage pressures, and supply-chain disruptions linked to international shipping delays and GCC-related import difficulties. Supplier delivery times also deteriorated to the greatest extent in over three years, further compounding operational strain.
In summary, the report points to a construction sector facing stagflationary conditions, where falling output coincides with rising costs, weakening profitability, and subdued business confidence.
Definition
The Construction Purchasing Managers' Index (PMI) provides an estimate of business activity in the UK construction sector for the preceding month based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 170 construction companies. The panel is stratified geographically and by Standard Industrial Classification (SIC) group, based on the regional and industry contribution to gross domestic product. Results are synthesised into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) activity versus the previous month and the closer to 100 (zero) the faster is activity growing (contracting). The data are compiled by the Chartered Institute of Purchasing and Supply (CIPS) and S&P Global.
Description
The survey is based on techniques successfully developed in the USA over the last 60 years by the National Association of Purchasing Management. It is designed to provide one of the earliest indicators of significant change in the economy. The data collected are not opinion on what might happen in the future, but hard facts on what is actually happening at 'grass roots' level in the economy. As such the information generated on economic trends pre-dates official government statistics by many months.