LONDON, Aug 6 (Reuters) – The downturn in Britain’s construction industry eased in July as commercial building and housebuilding weakened less sharply and builders turned the most optimistic since before the Iran war started, a survey by S&P Global showed.
The S&P Global UK Construction Purchasing Managers’ Index (PMI) stood at 44.7 in July, jumping from 38.4 in June to well above the 40.0 median forecast in a Reuters poll of economists. The 50-mark separates growth from contraction.
“July data suggests that the performance of the UK construction sector has started to stabilise after a sharp downturn throughout the second quarter of 2026,” said Tim Moore, economics director at S&P Global Market Intelligence.
• The commercial activity index was the highest in four months, rising to 46.8 in July from 41.5 in June
• Housebuilding declined at the slowest pace since October 2025
• While civil engineering showed the steepest pace of decline among the PMI’s main sub-categories, the downturn eased from the more than six-year low in June
• S&P’s gauge of new orders was the highest since September 2025, signalling a slower decline in demand
• Employment fell for the 19th month in a row, though at the slowest pace since February, before the Iran war began
• Subcontractor availability grew at the fastest pace since April 2025
• A gauge of input costs eased to 69.8 from 77.9, slowing for the second straight month after May’s near four-year high of 83.5
• Construction firms turned the most upbeat about the coming 12 months since February
• The composite PMI, which includes services and manufacturing firms, rose to 51.6 from 48.4, the highest in five months
(Reporting by Suban AbdullaEditing by William Schomberg and Hugh Lawson)
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