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UK construction activity fell again in September 2026, but at a slower pace than in August. The S&P Global UK Construction PMI rose from 44.3 to 46.1; because readings below 50 indicate contraction, the improvement marks a moderation in decline—not a return to growth. It was the least marked downturn in output volumes for eight months. S&P Global UK Construction PMI figures and report
What the September PMI says—and what it does not
The PMI is a survey-based indicator of reported month-to-month changes, not an official measure of construction output volumes. The September survey covered around 150 construction companies, with responses collected in the second half of the month. A score below 50 means more surveyed firms reported worsening conditions than improving ones; it does not quantify the percentage change in national output. S&P Global UK Construction PMI survey methodology and results
The rise from 44.3 in August to 46.1 in September therefore means the contraction became less severe. It does not mean activity expanded, nor does the headline alone establish that a sustained recovery has begun.
Which parts of construction held up best?
All three main subsectors contracted in September, though their falls softened compared with August. Commercial construction was closest to stabilisation, while housing remained the weakest segment. S&P Global UK Construction PMI subsector figures
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| Subsector | September index | What it indicates |
|---|---|---|
| Commercial construction | 48.5 | Smallest fall among the three subsectors; activity was still contracting. |
| Housing | 40.7 | Weakest segment, with output falling substantially. |
| Civil engineering | Not stated in the accessible report summary | Activity contracted, with a softer fall than in August. |
Tim Moore, Economics Director at S&P Global Market Intelligence, said commercial building saw its smallest fall in activity since May 2025. He described housebuilding as the weakest performer, with rising borrowing costs and unfavourable market conditions weighing on output. S&P Global UK Construction PMI report and Tim Moore statement
Why did construction output continue to fall?
Weak demand for new work was a central drag. Total new orders declined at their fastest rate since June. Surveyed firms pointed to sluggish market conditions, geopolitical tensions, sharply rising input costs and delayed decisions on major projects. S&P Global UK Construction PMI report on new orders
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Employment fell again, continuing a run of monthly declines recorded since January 2025; September’s fall was the fastest in five months. Demand for construction products and materials also declined markedly. These indicators help explain why a less severe output fall did not yet signal a broad improvement in workload. S&P Global UK Construction PMI report on employment and purchasing
Costs rose more slowly, but remained a pressure
Average cost burdens rose sharply in September, even though the rate of inflation eased to a seven-month low. Around 25% of survey respondents reported higher purchasing costs, compared with 3% who reported lower costs. Firms cited fuel surcharges, freight and raw materials. A slower rate of cost inflation means costs were rising less quickly; it does not mean they were falling. S&P Global UK Construction PMI report on input prices
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What does the outlook suggest?
Expectations were positive on balance but confidence weakened. Around 31% of firms expected activity to rise over the following 12 months, while 21% expected it to fall. Overall confidence was at its lowest in four months and much weaker than in August. S&P Global UK Construction PMI report on business expectations
The Bank of England’s September 2026 Agents’ summary also described construction as weak, particularly housebuilding. Its business contacts cited uncertainty, continuing cost pressures and tighter funding conditions as factors delaying projects and weighing on confidence and output. The Bank noted a substantial infrastructure pipeline, while identifying planning and regulatory constraints as risks to delivery. This is qualitative intelligence from business contacts, not a monthly output statistic. Bank of England Agents’ summary, September 2026
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How to read the change in context
- Output: The headline PMI improved, but remained below the no-change threshold.
- Work coming in: New orders fell faster than in June, pointing to continuing weakness in demand.
- Business conditions: Confidence declined even as firms’ reported output falls eased.
- Subsectors: Commercial work was comparatively resilient; housebuilding was the weakest.
Taken together, the survey points to a slower contraction in September, not a settled recovery. The headline is one survey indicator, and should be read alongside its weaker signals on new orders, employment and confidence.
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