| Actual | Previous | |
| Index | 38.4 | 38.2 |
Highlights
The UK Construction PMI edged up marginally to 38.4 from 38.2 in May, signalling that activity remains deeply in contractionary territory despite a slight improvement. Commercial construction demonstrated relative resilience, while house building weakened to its lowest level of 2026 and civil engineering recorded its steepest contraction since April 2020. Persistent weakness reflects subdued housing demand, elevated borrowing costs, delayed project commencements and continued business uncertainty.
New orders also declined, although at the slowest pace since March, suggesting that demand conditions may be stabilising gradually. Employment continued to contract for an eighteenth consecutive month, underscoring firms' cautious approach to capacity management. Encouragingly, easing supply chain pressures, improved subcontractor availability and slower input cost inflation indicate that operational constraints are becoming less severe.
Moreover, business confidence strengthened to its highest level since March, supported by expectations of increased public infrastructure investment, defence-related projects and the resumption of postponed developments. In summary, while the sector remains fragile, improving cost dynamics and renewed optimism provide early indications that the downturn may be approaching a turning point.
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.