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04.06.202609:19:18UTC+00UK Construction Activity Falls at Fastest Pace Since 2020

The S&P Global UK Construction PMI dropped to 38.2 in May 2026 from 39.7 in April, falling short of market expectations of 40.2 and indicating the steepest contraction in construction activity since May 2020. Housing remained the weakest-performing segment, while commercial and civil engineering work also declined, reflecting client caution amid elevated inflation and geopolitical tensions.

New orders fell at the fastest rate in six years as project delays, deferred investment decisions, and budget cuts continued to weigh on demand. In response, both employment and purchasing activity extended their downward trends.

On the cost side, input price inflation accelerated to its highest level since June 2022, driven primarily by rising fuel and transport costs. Supplier delivery times lengthened at the sharpest pace since December 2022, amid shipping disruptions and material shortages.

Business confidence remained in positive territory but eased to one of its weakest readings since late 2022, reflecting persistent concerns over inflation, borrowing costs, and the broader economic outlook.

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