PMI shows UK construction input costs spike amid Iran tensions
Construction in the UK just got a lot pricier: input costs saw their sharpest jump in almost four years, mostly because supply chains are tangled up by Iran-related tensions.
According to the S&P Global UK Construction Purchasing Managers' Index (PMI), input cost inflation soared from 70.5 in March 2026 to 81.4 in April 2026, making it the biggest spike since June 2022 and nearly a record-breaker since 1997.
Construction activity shrinks, firms cut jobs
It's not just about expensive materials: construction activity is actually shrinking, with new orders dropping fast and companies cutting jobs to manage higher payroll costs.
Delays at key shipping routes like the Strait of Hormuz are making things worse, and nearly 70% of firms reported higher costs last month.
All this uncertainty is leaving business leaders pretty worried about what's next for the industry.