UK construction output continues to slide in April
Slowest decline in total construction activity for three months as house building shows resilience
CONSTRUCTION activity decreased for the fourth consecutive month as rising business uncertainty led to delayed decision-making on new projects. The latest survey indicated further declines in total order books although output growth projections edged up to the highest since December 2024.
At 46.6 in April, the headline S&P Global UK Construction Purchasing Managers’ Index (PMI) – a seasonally adjusted index tracking changes in total industry activity – remained below the 50.0 no-change value but was up slightly from 46.4 in March and signalled the slowest decline in output levels for three months.
Residential work showed a degree of resilience in April, with the rate of contraction easing to the least marked in 2025 to date (index at 47.1). Moreover, the latest reduction in activity was the slowest seen across the three sub-categories of construction work.
Civil engineering remained the weakest-performing area of construction activity in April (43.1), with the latest survey indicating a sharp rate of decline amid a lack of new work to replace completed projects.
Commercial work (45.5) decreased for the fourth month running in April and the pace of decline accelerated to its fastest since May 2020. Construction companies widely noted that heightened business uncertainty and worries about the broader UK economic outlook had weighed on client demand.
April data indicated a steep reduction in total new work and the pace of decline was the second-fastest since May 2020. Survey respondents typically commented on the impact of subdued business and consumer confidence.
Looking ahead, however, construction firms are optimistic on balance about their prospects for the next 12 months. Around 41% of the survey panel forecast a rise in output, while only 18% predict a decline. This signalled a slight improvement in business optimism to its highest since December 2024. A number of firms commented on positive expectations for residential building work, despite ongoing domestic economic headwinds and fragile client confidence.
Tim Moore, economics director at S&P Global Market Intelligence, said: ‘UK construction companies have endured a bumpy ride since the start of the year as domestic economic headwinds and hesitancy among clients led to a lack of new work to replace completed contracts.
‘Output levels continued to slide in April, but the rate of decline eased to its slowest for three months. This was helped by slower reductions in residential building work and civil engineering activity.
‘Commercial construction was a weak spot and lost momentum since March. Output decreased at the fastest pace for nearly five years amid reports of greater risk aversion among clients and a wait-and-see approach to major spending decisions.
‘An encouraging development in April was a slight improvement in business activity expectations for the year ahead. Output growth projections improved to the highest level so far this year, with a number of survey respondents citing the prospect of a turnaround in workloads across the residential building segment.’
