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UK construction PMI rises to 44.7 in July 2026, but contraction persists

UK construction PMI rises to 44.7 in July 2026, but contraction persists

Britain's construction downturn eased in July as commercial building, housebuilding and civil engineering all weakened less sharply, while firms grew more optimistic and cost pressures cooled.

Fact Check
Both the caller-supplied Trading Economics news page ('UK Construction Activity Falls Less') and the Trading Economics UK Construction PMI indicator page directly state the PMI rose to 44.7 in July 2026 from 38.4 in June, rebounding from May's six-year low of 38.2. A reading of 44.7 is below 50, confirming continued contraction as claimed. Both sources describe the eased declines in activity, new business and employment, softer cost pressures, and improving Middle East conditions supporting orders—matching the claim precisely. The surrounding baseline figures (May 38.2 six-year low, June 38.4) are independently corroborated by S&P Global's official press release and a Yahoo Finance report.
Summary

UK construction activity remained in contraction in July 2026, though the downturn eased markedly as the S&P Global UK Construction Purchasing Managers' Index rose to 44.7 from 38.4 in June, well above the 40.0 median forecast in a Reuters poll of economists. Tim Moore, economics director at S&P Global Market Intelligence, said the data suggested the sector had started to stabilise after a sharp downturn throughout the second quarter of 2026. Commercial activity improved to 46.8 from 41.5, the highest in four months, while housebuilding fell at the slowest pace since October 2025 and civil engineering, though still the weakest main category, declined less sharply than in June after hitting a more than six-year low. New orders fell more slowly, with the gauge reaching its highest level since September 2025. Employment dropped for a 19th straight month but at the slowest pace since February, subcontractor availability increased at the fastest rate since April 2025, and input cost inflation eased to 69.8 from 77.9 after May's near four-year high of 83.5. Construction firms were the most upbeat about the coming 12 months since February, and the broader composite PMI covering services and manufacturing rose to 51.6 from 48.4, a five-month high.

Terms & Concepts
  • PMI: Purchasing Managers' Index, a survey-based measure of business activity where readings below 50 indicate contraction and above 50 indicate growth.
  • civil engineering: Construction activity focused on infrastructure projects such as roads, bridges and utilities.
  • input cost inflation: The rate at which companies' costs for materials, energy and other inputs are rising.