Construction activity across the UK fell sharply in April with the sector recording its steepest decline in output since November 2025 according to the latest S&P Global UK Construction PMI data.
The headline S&P Global UK Construction Purchasing Managers’ Index fell to 39.7 in April, down from 45.6 in March. Any reading below 50 signals contraction.
The latest figures indicate construction output has now fallen continuously since January 2025, with activity weakening across all major areas of the sector.
Civil engineering recorded the sharpest decline, with an index reading of 35.3, followed by housebuilding at 38.2. Commercial construction proved comparatively more resilient at 42.7, although this still represented its fastest downturn of 2026 so far.
SUBDUED DEMAND
Survey respondents pointed to subdued demand conditions, weaker pipelines and a lack of replacement work as completed projects finished.
Construction firms also highlighted growing uncertainty linked to the ongoing Middle East conflict, which they said was impacting confidence, delaying investment decisions and reducing tender opportunities.
The downturn in activity contributed to a further reduction in staffing levels across the sector, with companies reporting the sharpest pace of job cuts in four months.
Many firms said they were choosing not to replace departing staff amid weaker workloads and continued wage pressures.
At the same time, input cost inflation accelerated sharply in April, reaching its highest level since June 2022.
SUPPLY CHAIN DISRUPTION
The survey also revealed worsening supply chain disruption, with suppliers’ delivery times lengthening at the fastest pace for more than three years.
Construction businesses linked delays to international shipping disruption and concerns around material availability, while some firms reported increasing levels of advanced purchasing in anticipation of further cost rises.
The latest PMI data adds to growing concerns around housing delivery and development viability, with developers, contractors and industry bodies increasingly warning that higher build costs, supply chain disruption and weaker confidence are continuing to weigh heavily on activity levels across the sector.
HIGHER COST BURDENS
Tim Moore, Economics Director at S&P Global Market Intelligence, says: “A rapid acceleration of input cost inflation was seen across the UK construction sector in April.
Aside from the post-pandemic surge in input prices from early-2021 to mid-2022, the latest rise in purchasing costs was the steepest in three decades of data collection.
“Around two-thirds of the survey panel reported higher cost burdens in April, which was overwhelmingly linked to fuel surcharges and subsequent rises in raw material prices.”
GEOPOLITICAL UNCERTAINTY
Terry Woodley, MD of Development Finance at Shawbrook, says: “The construction industry has been dealt a difficult hand so far. Planning system delays and limited policy support to incentivise housebuilding have meant that activity has continued to decline.
“On top of this, ongoing geopolitical uncertainty has meant additional challenges, including an increase in inflation, a rise in fuel and energy prices and disruptions to transport and shipping – further dampening activity.
“As such, short-term predictions for the sector are muted. Developers are right to exercise caution in these circumstances and should consult a broker to ensure they can access the right funding options needed to get projects over the line this year.”
