All three of construction's sub-sectors have seen their sharpest drop in activity since May 2020, according to the latest S&P Global UK Construction Purchasing Managers’ Index (PMI) for November.

The index said November 2025 reported a construction activity reading of 39.4, down from the 44.1 reported in October. Readings above 50 mean activity is increasing, while anything below means it is contracting.

This in turn means that lower volumes of construction output have now been recorded for eleven months in a row.

Sub-sector data showed that housing activity stood at 35.4, commercial construction and civil engineering stood at 43.8 and 30.0, respectively. All three experienced the fastest downturns in activity since May 2020, which saw an overall record low of 28.9.

Figures released in September’s PMI showed a slight increase in construction activity in August, but data was still “indicative of another solid decline in overall construction output”.

The S&P said ongoing cost burdens increased at an accelerated pace in November, but the speed of inflation remained well below the long-run survey average. The index highlighted higher prices for a items, especially electrical components, copper products and insulation.

Tim Moore, economics director at S&P Global Market Intelligence, said the data revealed a “sharp retrenchment across the UK construction sector as weak client confidence and a shortfall of new project starts again weighed on activity”.

“Industry activity decreased to the greatest extent for five-and-a-half years, led by steep falls in infrastructure and residential building work,” he added.

“Commercial construction also faced severe headwinds during November as business uncertainty in the run up to the Budget pushed clients to defer investment decisions.

“Construction companies also signalled a slide in business activity expectations for the year ahead as hopes of an imminent rebound in sales pipelines faded in November. The degree of optimism dropped to its lowest since December 2022 amid reports of cutbacks to client budgets and pervasive worries about long-term UK economic growth prospects.”