Gloom slowly lifting from construction buyers

The bellwether S&P International UK Development Buying Managers’ Index posted 47.9 in Could- up from 46.6 in April – to sign the slowest discount in output volumes since January.

Whole new work acquired by UK development corporations decreased to the least marked extent for 4 months in Could with business one of the best performing sector.

Tim Moore, Economics Director at S&P International Market Intelligence, stated: “The development sector continued to regulate to weaker order books in Could, which led to sustained reductions in output, employees hiring and buying.

“Nonetheless, the worst section of spending cutbacks could have handed as whole new work fell at a a lot slower tempo than the close to five-year file in February.

“Housing exercise was the weakest-performing section in Could as demand remained constrained by elevated borrowing prices and subdued confidence. Business work was near stabilisation after a marked decline in April, suggesting that fears about home financial prospects have abated after the preliminary shock of US tariff bulletins.

“Output development expectations throughout the UK development sector recovered to the very best thus far in 2025. Survey respondents largely cited a basic enchancment in gross sales projections in addition to a possible tailwind from falling rates of interest over the yr forward.

“On the inflation entrance, stubbornly excessive enter value pressures have been recorded in Could, though the general rise in buying prices was the least marked for 4 months. Many corporations famous that suppliers continued to go by higher payroll prices.

“Rising wages, squeezed margins and subdued demand weighed on development employment, regardless of a brighter outlook for enterprise exercise. Job shedding was the steepest since August 2020, whereas subcontractor utilization decreased to the best extent for 5 years.