Buyers more bullish about prospects for year ahead

The bellwether S&P International UK Building Buying Managers’ Index recorded 46.6 in April – up barely from 46.4 in March however under the 50.0 no-change worth for the fourth consecutive month.

It signalled the slowest decline in output ranges for 3 months.

Wanting forward, building companies are optimistic on steadiness about their prospects for the following 12 months. Round 41% of the survey panel forecast an increase in output, whereas solely 18% predict a decline.

This signalled a slight enchancment in enterprise optimism to its highest since December 2024.

Residential work was resilient in April, with the speed of contraction easing to the least marked in 2025 to this point (index at 47.1). The most recent discount in exercise
was the slowest seen throughout the three sub-categories of building work.

Civil engineering remained the weakest-performing space of building exercise in April (43.1), with the newest survey indicating a pointy price of decline amid a scarcity of latest work to switch accomplished tasks.

Industrial work (45.5) decreased for the fourth month working in April and the tempo of decline accelerated to its quickest since Might 2020.

Building corporations extensively famous that heightened enterprise uncertainty and worries concerning the broader UK financial outlook had weighed on shopper demand.

Tim Moore, Economics Director at S&P International Market Intelligence, stated: “UK building corporations have endured a bumpy experience for the reason that begin of the yr as home financial headwinds and hesitancy amongst shoppers led to a scarcity of latest work to switch accomplished contracts.

“Output ranges continued to slip in April, however the price of decline eased to its slowest for 3 months. This was helped by slower reductions in residential constructing work and civil engineering exercise.

“Industrial building was a weak spot and misplaced momentum since March. Output decreased on the quickest tempo for practically 5 years amid reviews of larger threat aversion amongst shoppers and a wait-and-see strategy to main spending choices.

“Regardless of a pointy and accelerated fall in enter shopping for, robust value pressures continued in April. General enter worth inflation eased solely barely from March’s 26-month peak. Survey respondents commented on rising costs paid for a variety of uncooked supplies, in addition to efforts by suppliers to move on larger payroll prices.

“An encouraging improvement in April was a slight enchancment in enterprise exercise expectations for the yr forward. Output progress projections improved to the very best degree up to now this yr, with a variety of survey respondents citing the prospect of a turnaround in workloads throughout the residential constructing phase.”