UK Construction Suffers Sharpest Decline in Five Years, Survey Reveals

Construction activity in the UK has declined at its sharpest rate in five years, according to a closely watched industry survey, signalling deepening challenges in the sector. The S&P Global/CIPS UK Construction Purchasing Managers’ Index (PMI) dropped significantly in July, reflecting a sharp slowdown in new orders and overall output.

Housebuilding remained the weakest-performing segment, with commercial and civil engineering work also contracting. Rising interest rates, tighter credit conditions, and economic uncertainty have all weighed heavily on demand, the report noted.

The downturn raises concerns about the broader health of the UK economy, as construction plays a vital role in driving growth, investment, and employment. Industry leaders are calling for greater policy support to revive confidence and stimulate activity in the months ahead.

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