The commercial activity index improved but remained among the weakest readings since the pandemic
Published Mon, Jul 6, 2026 · 04:51 PM
[LONDON] Britain’s construction sector contracted sharply again in June, though the downturn eased slightly from May’s six-year low as commercial building weakened less, a business survey showed on Monday (Jul 6).
The S&P Global UK Construction Purchasing Managers’ Index (PMI) rose to 38.4 in June from 38.2 in May, a survey by S&P Global showed. The 50-mark separates growth from contraction.
“A number of survey respondents suggested recent new contract awards and an expected improvement in broader market conditions had underpinned optimism,” said Tim Moore, economics director at S&P Global Market Intelligence.
The commercial activity index improved but remained among the weakest readings since the pandemic.
House building recorded its sharpest decline of 2026 so far. Civil engineering slumped to its steepest fall since April 2020, amid reports of delayed infrastructure work and fewer public sector tenders.
The new orders index rose to a three-month high, signalling a slower but still sharp decline in demand.
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Employment fell for an 18th straight month, while subcontractor availability improved at the fastest pace since April 2025.
Cost pressures eased, with the input prices index falling from May’s near four-year high. REUTERS
