UK construction activity falls sharply on housebuilding slump

Summarised from 2 outlets · Updated 5 Nov, 12:24 · Archive

UK construction activity contracted sharply in October amid a severe housebuilding slump.

UK construction activity contracted in October at the fastest rate since June, with the S&P Global purchasing managers' index falling to 43.6 from 46.1 in September. The reading fell short of the 46.5 forecast by most economists. Any reading above 50 indicates growth; below 50 signals contraction. The sector has been contracting for nearly two years.

Housebuilding has suffered the biggest slump so far this year, driving the overall decline. Tim Moore, economics director at S&P Global Market Intelligence, said construction companies faced 'severe headwinds in the house building sector from rising borrowing costs, weak consumer confidence and elevated economic uncertainty'.

Other areas showed more resilience. Moore noted strong demand for data centre projects and rising workloads in energy and utilities sectors. Infrastructure spending remained relatively robust, contributing to the slowest fall in civil engineering activity since May 2025.

The sharp contraction comes despite the Government's announcement in September of its Your First Home scheme, intended to help thousands of English households take their first step on the housing ladder as a replacement for the previous Help to Buy initiative.

How it is being reported

• Construction activity falls on slump in housebuilding amid ‘severe headwinds’The latest S&P Global UK construction purchasing managers’ index (PMI) showed a reading of 43.6 in October, down from 46.1 in September.Evening Standard · 5 Nov, 11:57
• Construction activity falls on slump in housebuilding amid ‘severe headwinds’The latest S&P Global UK construction purchasing managers’ index (PMI) showed a reading of 43.6 in October, down from 46.1 in September.Independent Business · 5 Nov, 11:57

In this story: S&P Global Market Intelligence · Tim Moore · UK · England

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log