UK construction contracts for 18th month, PMI at 38.4

The UK construction sector contracted sharply for an 18th consecutive month in June, with housebuilding activity falling at its fastest pace so far this year, according to a closely watched industry survey. The S&P Global UK Construction Purchasing Managers’ Index (PMI) registered 38.4 last month, only marginally above May's six-year low of 38.2. Any reading below 50 indicates contraction.

While the headline figure showed a slight easing from May's low, the sector's overall performance remained deeply negative, marking the second-steepest decline in output since the start of the COVID-19 pandemic. The downturn was broad-based, with particular weakness in residential and civil engineering work.

Housebuilding recorded its sharpest decline of 2026, with companies citing headwinds from subdued housing sales, elevated mortgage rates, and squeezed consumer finances. Civil engineering activity slumped at its fastest pace since April 2020, the period of the first national lockdown, amid reports of delayed infrastructure projects and fewer public sector tender opportunities.

The only segment to see a moderation in its downturn was commercial construction, though activity there also...