UK construction activity decreases more gradually in December

UK Construction Sector Shows Continued Decline, But Pace Slows

At the close of 2025, construction firms in the UK faced another significant drop in both business activity and new orders. Despite this, the rate of decline was less severe than the record lows recorded in November. Reductions in workforce numbers also became less pronounced, supported by a boost in business confidence—the strongest since July.

The seasonally adjusted S&P Global UK Construction Purchasing Managers’ Index™ (PMI®), which measures overall industry performance, rose to 40.1 in December from 39.4 in November. Although this marks a slight improvement, it remains well below the neutral threshold of 50.0, indicating ongoing contraction in the sector.