Home / Business and Economy / UK Construction Plunges to Deepest Slump Since Covid
UK Construction Plunges to Deepest Slump Since Covid
7 Jan
Summary
- UK housebuilding activity is in its deepest slump since the pandemic.
- The wider construction sector has been in decline for a year.
- Optimism grows for future improvements due to infrastructure spending.
UK housebuilding activity is currently experiencing its most significant downturn since the onset of the Covid pandemic, as the broader construction sector endures a year-long decline. Both housing and commercial construction segments have seen sharp contractions in activity.
The latest S&P Global UK construction purchasing managers' index (PMI) registered below the neutral 50-point threshold for the twelfth consecutive month in December 2025. This prolonged slump is attributed to fragile client confidence and a reduction in demand, leading many firms to report smaller workloads as the year concluded.
Despite these challenges, a more optimistic outlook is emerging. Survey respondents cited expectations of increased infrastructure spending and hopes that lower borrowing costs and easing inflation could stimulate demand across the construction sector, suggesting potential for future improvement.
