Buyers more bullish about prospects for year ahead

The bellwether S&P International UK Building Buying Managers’ Index recorded 46.6 in April – up barely from 46.4 in March however beneath the 50.0 no-change worth for the fourth consecutive month.

It signalled the slowest decline in output ranges for 3 months.

Wanting forward, development corporations are optimistic on steadiness about their prospects for the subsequent 12 months. Round 41% of the survey panel forecast an increase in output, whereas solely 18% predict a decline.

This signalled a slight enchancment in enterprise optimism to its highest since December 2024.

Residential work was resilient in April, with the speed of contraction easing to the least marked in 2025 so far (index at 47.1). The newest discount in exercise
was the slowest seen throughout the three sub-categories of development work.

Civil engineering remained the weakest-performing space of development exercise in April (43.1), with the most recent survey indicating a pointy price of decline amid an absence of latest work to switch accomplished tasks.

Business work (45.5) decreased for the fourth month operating in April and the tempo of decline accelerated to its quickest since Could 2020.

Building corporations broadly famous that heightened enterprise uncertainty and worries in regards to the broader UK financial outlook had weighed on shopper demand.

Tim Moore, Economics Director at S&P International Market Intelligence, stated: “UK development corporations have endured a bumpy experience for the reason that begin of the 12 months as home financial headwinds and hesitancy amongst purchasers led to an absence of latest work to switch accomplished contracts.

“Output ranges continued to slip in April, however the price of decline eased to its slowest for 3 months. This was helped by slower reductions in residential constructing work and civil engineering exercise.

“Business development was a weak spot and misplaced momentum since March. Output decreased on the quickest tempo for almost 5 years amid experiences of larger threat aversion amongst purchasers and a wait-and-see strategy to main spending selections.

“Regardless of a pointy and accelerated fall in enter shopping for, robust value pressures endured in April. Total enter worth inflation eased solely barely from March’s 26-month peak. Survey respondents commented on rising costs paid for a variety of uncooked supplies, in addition to efforts by suppliers to go on larger payroll prices.

“An encouraging growth in April was a slight enchancment in enterprise exercise expectations for the 12 months forward. Output progress projections improved to the very best degree up to now this 12 months, with a lot of survey respondents citing the prospect of a turnaround in workloads throughout the residential constructing section.”