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UK Construction PMI Plunges to 39.4, Fastest Contraction Since 2020

Economists caution the survey likely exaggerates weakness versus ONS output.

Overview

  • S&P Global’s November reading fell from 44.1 in October to 39.4, marking an 11th consecutive month below the 50 no‑change threshold.
  • Activity declined across housing, commercial and civil engineering, with sub‑indices reported at 35.4, 43.8 and 30 respectively.
  • Firms reported steep drops in new orders, the most pronounced job cuts since August 2020, and the weakest business expectations since December 2022.
  • Survey respondents pointed to clients deferring projects during intense pre‑Budget tax speculation, with risk aversion weighing on new work.
  • EY Item Club and Pantheon noted the PMI has run more pessimistic than ONS data showing output growth in six of the nine months to September, and said a rebound in the next survey seems likely after smaller‑than‑feared tax rises.