UK construction is still shrinking, but a turnaround might be coming
Britain's construction sector shrank for the 12th month straight in December 2025—marking its longest slump since the late 2000s.
The latest PMI score was 40.1 (anything below 50 means contraction), with housebuilding and commercial projects hit hardest, echoing pandemic-era lows.
What's dragging things down?
Low client confidence and delayed government decisions have slowed new projects and orders.
Housing output dropped to its lowest point in years, while commercial and civil engineering work also took a hit.
On the bright side, costs are easing up, layoffs have slowed, and optimism about the future is actually at a five-month high.
Is there hope for 2026?
Yes—experts expect UK construction to bounce back this year.
Big boosts are predicted for infrastructure, industrial sites, and offices, with civil engineering expected to benefit from investments in green energy, major rail lines like HS2, and new power stations.