April was a challenging month for the UK construction sector, with the biggest drop in construction output since November last year, S&P Global UK construction data revealed.
The headline seasonally adjusted S&P Global UK Construction PMI registered 39.7 in April, down from 45.6 in March, a sharp drop in overall business activity.
The reduced effect has been seen in each month since January and is now the weakest in the last five months.
Meanwhile, the civil engineering profession registered the largest decline with an index of 35.3, followed by housing construction at 38.2.
Commercial activity registered at 42.7, showing some resilience compared to elsewhere in the construction sector, although the latest reduction was the fastest recorded so far in 2026.
Survey respondents broadly reported conditions of low demand and a lack of new work to replace projects completed in April.
This has been shown to be the biggest drop in new business since November 2025.
Construction companies were often aware that high business uncertainty due to the conflict in the Middle East led to long sales turnaround times and fewer tender opportunities.
A recent survey showed a sharp and rapid decline in overall procurement activity across the construction sector, largely reflecting a reduced workload.
However, some firms have commented on the improved procurement of raw materials to be taken
concerns about rising costs and potential supply disruptions.
S&P Global Market Intelligence chief economist Tim Moore says: “The acceleration of input cost increases was seen across the UK construction sector in April. Despite the post-pandemic increase in input prices from early 2021 to mid-2022, the latest increase in input costs was the highest in three decades of data collection.”
Moore adds: “April’s data again showed that demand conditions are low, despite construction companies reporting pockets of growth in areas such as energy infrastructure work.
“Construction job prospects over the next 12 months remained positive in April, but confidence levels were the lowest since last November.”
Also commenting, Shawbrook’s managing director of development finance, Terry Woodley, says: “The construction industry has been facing a tough challenge so far. Delays in planning and limited policy support to encourage housebuilding have meant that activity has continued to slow down.”
“On top of this, continued political uncertainty has meant additional challenges, including rising inflation, rising fuel and energy prices and transport and shipping disruptions – another draining activity.”
“Therefore, the short-term forecasts of the sector are muted. Developers should use caution in these situations and should contact the seller to ensure that they can access the right financing options needed to get the projects this year.”
