UK construction activity continued to contract in September 2026, but the pace of decline eased. The S&P Global UK Construction Purchasing Managers’ Index (PMI) rose from 44.3 in August to 46.1 in September. Because a PMI reading below 50 signals contraction, the improvement marks a slower fall—not a return to growth.
What the September construction PMI shows
The seasonally adjusted headline index rose by 1.8 points, from 44.3 in August to 46.1 in September. S&P Global described the decline in output volumes as the least marked in eight months; Economics Director Tim Moore said it was the least marked since January. The PMI tracks survey respondents’ reports of month-to-month changes in activity. It is not a measure of the total amount of construction work completed.
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All three surveyed sectors—residential, commercial and civil engineering—continued to decline, though their falls softened. Commercial construction registered 48.5, its mildest contraction since May 2025. Housing remained the weakest segment at 40.7. S&P Global’s September survey results, reported by ConstructUK.
Why activity remained under pressure
New work fell faster
Despite the slower fall in output, total new work declined at its fastest pace since June. Survey respondents cited delayed decisions on major projects, subdued demand, geopolitical tensions and rising input costs. These are explanations reported by businesses in the survey, not independently established causes.
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Employment and confidence weakened
Construction employment fell for another month. S&P Global said employment had declined every month since January 2025, and that September’s fall was the fastest in five months. Subcontractor use also decreased.
Business optimism fell to its lowest level since May. Around 31% of respondents expected activity to rise over the next 12 months, while 21% expected it to fall. Respondents pointed to forthcoming infrastructure work as a potential support, while political uncertainty, weak housing conditions and inflationary pressures weighed on expectations.
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Input costs still rose
About 25% of survey respondents reported higher purchasing costs and 3% reported a decline. Cost burdens increased sharply, although the rate of cost inflation eased to a seven-month low. Respondents mentioned fuel surcharges, freight and raw material prices.
How the PMI compares with official construction output
The latest Office for National Statistics (ONS) construction bulletin available on 6 October 2026 covered July, not September. It estimated that monthly Great Britain construction output rose 0.1% in July, after falling 0.1% in June and 0.8% in May. Over the three months to July, output fell 0.5%, following four consecutive increases in the three-month series. New work decreased 0.4% and repair and maintenance decreased 0.7% over that three-month period. ONS, Construction output in Great Britain: July 2026.
These figures describe different things and periods, so they are not contradictory. The PMI is a survey of businesses’ reported month-to-month changes in activity. ONS estimates the value of work chargeable to customers for building and civil engineering completed during a reference period, excluding VAT and payments to subcontractors. ONS also seasonally adjusts its estimates to account for calendar and seasonal effects.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.ONS data note on public housing new work
The ONS bulletin disclosed an error affecting the level of public housing new-work output from January 2022. The error raises the output level by approximately 1.2% from January 2022 onward. ONS said the growth rate is affected only for January 2022, and that 2022–23 data would be corrected in Blue Book 2026. ONS data-quality note.
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