Gloom slowly lifting from construction buyers

The bellwether S&P International UK Development Buying Managers’ Index posted 47.9 in Might- up from 46.6 in April – to sign the slowest discount in output volumes since January.

Complete new work obtained by UK building corporations decreased to the least marked extent for 4 months in Might with industrial the very best performing sector.

Tim Moore, Economics Director at S&P International Market Intelligence, mentioned: “The development sector continued to regulate to weaker order books in Might, which led to sustained reductions in output, workers hiring and buying.

“Nevertheless, the worst section of spending cutbacks might have handed as complete new work fell at a a lot slower tempo than the close to five-year document in February.

“Housing exercise was the weakest-performing section in Might as demand remained constrained by elevated borrowing prices and subdued confidence. Industrial work was near stabilisation after a marked decline in April, suggesting that fears about home financial prospects have abated after the preliminary shock of US tariff bulletins.

“Output progress expectations throughout the UK building sector recovered to the very best up to now in 2025. Survey respondents principally cited a basic enchancment in gross sales projections in addition to a possible tailwind from falling rates of interest over the yr forward.

“On the inflation entrance, stubbornly excessive enter value pressures had been recorded in Might, though the general rise in buying prices was the least marked for 4 months. Many companies famous that suppliers continued to move by way of higher payroll prices.

“Rising wages, squeezed margins and subdued demand weighed on building employment, regardless of a brighter outlook for enterprise exercise. Job shedding was the steepest since August 2020, whereas subcontractor utilization decreased to the best extent for 5 years.