UK construction sector sees steepest fall since early pandemic
In July 2025, the UK's construction industry shrank faster than it has in five years.
The key PMI score dropped, with housebuilding and civil engineering hit hardest.
It's the steepest fall since the early pandemic days.
Residential building takes big hit
A survey of about 150 companies showed a drop in activity, mainly due to project delays, weak demand, and fewer new orders.
Residential building took a big hit, civil engineering saw its worst decline since 2020, and even commercial projects slowed down—just not as sharply.
This adds pressure to the already struggling UK economy
This isn't just about buildings—it adds pressure to an already struggling UK economy facing rising unemployment and stubborn inflation.
Even services are seeing fewer new orders now.
With so much uncertainty, S&P Global's Joe Hayes says companies are holding back on investment—and markets are betting there's a strong chance the Bank of England will cut interest rates soon to help out.