UK construction activity continued to contract in September 2026, but at a slower pace than in August. The S&P Global UK Construction PMI rose to 46.1 from 44.3, according to Building’s report. Because a PMI below 50 signals contraction, the higher reading points to a slower decline—not a rise in output. Commercial work showed the strongest reported improvement, while industry representatives looked to the forthcoming Budget for greater certainty.
What the September construction PMI says
The headline index increased by 1.8 points month on month, from 44.3 in August to 46.1 in September. Building reported that this was the slowest contraction since January and the 21st consecutive month below the PMI’s no-change threshold of 50. The figures are attributed here to Building’s coverage; a matching September 2026 S&P Global release was not located for independent confirmation.
A PMI is an index, not a direct measure of how many projects were completed or the percentage by which output changed. A rise in the index while it remains below 50 means activity is contracting less quickly according to the survey signal. It does not establish that construction output grew in September.
Which construction sectors performed best?
| Sector | September 2026 index | August 2026 index | What Building reported |
|---|---|---|---|
| Commercial | 48.5 | 47.8 | Improved, but remained below 50, indicating contraction. |
| Housing | 40.7 | 37.6 | Rose, but was the weakest-performing segment reported. |
| Civil engineering | Not stated in Building’s report | Not stated in Building’s report | Contracted at a slower rate; no index value was provided in the article text. |
Commercial activity had the highest reported sector reading and helped lift the headline index. But 48.5 is still below 50, so it signals contraction rather than expansion. Housing also improved from August, yet its 40.7 reading remained markedly weaker than commercial activity.
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Building reported a solid decline in total new work, with the pace of contraction accelerating to its fastest since June. Survey respondents pointed to sluggish market conditions, geopolitical tensions, elevated borrowing costs, delayed decisions on major projects and sharply rising input costs.
Tim Moore, economics director at S&P Global, said buyer optimism had fallen to its lowest level since May. He cited softer order books, inflationary pressure and concerns about borrowing costs as reasons firms moderated their growth expectations for the year ahead.
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Industry comments offered qualified hope rather than evidence of a broad recovery. Huda As’ad, Accenture’s capital projects and infrastructure lead in the UK and Ireland, said the sector might be seeing “the first green shoots of stabilisation”, while stressing that “it is still early days”. Joe Sullivan, a partner at MHA, similarly said activity had picked up since August but optimism remained low.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What construction firms want from the Budget
With the Budget still forthcoming at the time of Building’s report, industry representatives called for clarity on infrastructure investment and the wider cost of doing business. Paul Atkinson, restructuring partner at FRP Advisory, said businesses were looking for greater certainty in those areas. Max Jones, director of infrastructure and construction at Lloyds, emphasised consistency in long-term infrastructure commitments so firms could plan ahead.
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These comments describe what stakeholders want from the Budget; they are not announcements of policy or confirmation of future spending. The PMI report provides no basis for predicting what measures the Budget will contain or how they will affect construction activity.
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