Data from the latest monthly survey of construction purchasing managers indicates a sharp and accelerated reduction in output levels across the sector amid widespread reports of challenging market conditions.
New orders also decreased to the greatest extent since May 2020. Many construction companies commented on weak client confidence, alongside delayed spending decisions linked to uncertainty ahead of the budget.
At 39.4 in November, down from 44.1 in October, the headline S&P Global UK 色猫直播 Purchasing Managers鈥� Index (PMI) was the lowest since May 2020. Declining volumes of construction output have now been recorded for 11 consecutive months.
Sub-sector data showed that housing activity (index at 35.4), commercial construction (43.8) and civil engineering (30.0) all experienced the fastest downturns in activity for five-and-a-half years. Survey respondents commented on fragile market confidence, delays with the release of new projects and a general lack of incoming new work.
Around 44% of the survey panel also reported a fall in new orders, while only 17% signalled an increase. Aside from the pandemic, the resulting seasonally adjusted New Orders Index pointed to the fastest downturn in new work since early 2009.
色猫直播 companies commented on sales headwinds due to risk aversion among clients, worries about the UK economic outlook and elevated business uncertainty ahead of the budget.
Employment numbers across the construction sector decreased for the 11th consecutive month in November, reflecting a lack of new work to replace completed projects and elevated wage pressures. The latest fall in staffing levels was the steepest since August 2020. Subcontractor usage also decreased, as has been the case in each month since December 2024.
Supplier performance meanwhile improved in November, with softer demand for construction products and materials inevitably alleviating supply chain pressures, although some firms cited ongoing challenges with shipping delays. Latest data also indicated that overall buying activity dropped last month at the steepest pace for five-and-a-half years.
Cost burdens increased at an accelerated pace in November, but the speed of inflation remained well below the long-run survey average. Anecdotal evidence pointed to higher prices paid for a range of items, especially electrical components, copper products and insulation.
As a result, optimism is in decline. The proportion of construction companies expecting an upturn in business activity in the next 12 months (31%) only narrowly exceeded those forecasting a decline (25%). The resulting Future Activity Index signalled the lowest degree of optimism since December 2022. Some firms commented on hopes of a rebound in general market conditions and support from lower borrowing costs. However, this was offset by signs of cutbacks to clients' investment spending plans and concerns about long-term domestic economic prospects.
Tim Moore, economics director at S&P Global Market Intelligence, which compiles the monthly survey, said: "November data revealed a sharp retrenchment across the UK construction sector as weak client confidence and a shortfall of new project starts again weighed on activity.
"Total industry activity decreased to the greatest extent for five-and-a-half years, led by steep falls in infrastructure and residential building work. Commercial construction also faced severe headwinds during November as business uncertainty in the run up to the budget pushed clients to defer investment decisions.
"Lower workloads, alongside pressure on margins from rising wages and purchasing costs, continued to dampen staff hiring in November. The latest round of job cuts was the most marked since August 2020.
"色猫直播 companies also signalled a slide in business activity expectations for the year ahead as hopes of an imminent rebound in sales pipelines faded in November. The degree of optimism dropped to its lowest since December 2022 amid reports of cutbacks to client budgets and pervasive worries about long-term UK economic growth prospects."
David Crosthwaite, chief economist at the Building Cost Information Service, said: 鈥淚f the latest construction PMI isn鈥檛 setting off alarm bells in Parliament, something's seriously amiss. The steepest downturn in UK construction activity in five-and-a-half years, including eleven consecutive months of decline this year, is no fluke. It mirrors an industry battling low client confidence, stifled demand and skills bottlenecks compounded by a limited financial ability to recruit.聽
鈥淎ccording to insight from the latest BCIS All-in Tender Price Index Panel, sentiment surveys are often a temperature check of construction鈥檚 SMEs where government data is more reflective of larger contractor outputs.
鈥淚f that鈥檚 the case, the latest PMI suggests current government actions are not enough and still failing the near-900,000 SMEs in construction. 聽Increasing the cost of doing business in the budget now feels even more like a step in the wrong direction.鈥�
Brian Smith, head of cost management at Aecom, expressed more faith in the govenrment. He said: 鈥淭his represents another month with a reduction in activity, continuing the trend that started at the beginning of 2025. Firms could be forgiven for not displaying any festive cheer, but the government has made all the right noises by protecting capital spending and backing planning reform. However, clients need to see further progress before committing to new projects.
鈥淭he additional 350 planners announced in the chancellor鈥檚 budget is a good example of the tangible measures that will fuel a growth in activity. But this needs to be combined with a shift in mindset, including embracing AI and digital tools to speed up how planning submissions are reviewed. Seeing this sort of progress in action will boost confidence among the country鈥檚 contractors in 2026.鈥�
Jordan Smith, regional director at Thomas & Adamson, part of Egis Group, also tried to find positives. He said: 鈥淣ovember鈥檚 PMI paints a stark picture, with construction output falling at its fastest pace since the early months of the pandemic. Activity has now been in decline for almost a full year, and the steep drop in new orders and employment underlines just how challenging conditions have become across all parts of the sector.
鈥淗ousing, commercial, and civil engineering have each seen significant slowdowns, driven largely by fragile client confidence and delayed spending decisions in the lead-up to the Budget. Businesses are understandably cautious, and this is filtering directly into project pipelines and hiring.
鈥淒espite the downturn, there are a few positives worth noting. Supply chain performance continues to improve, and while input costs are still rising, inflation is far more manageable than we鈥檝e seen over the last couple of years. These factors could help provide some stability as we move into 2026.
鈥淟ooking ahead, confidence has weakened but not disappeared. There remains a belief that lower borrowing costs, alongside targeted public-sector investment, could help turn sentiment around. The sector has weathered prolonged periods of uncertainty before, and with clear policy direction and consistent support, it is well placed to recover once the market conditions begin to settle.鈥�
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