New data from the construction Purchasing Managers' Index (PMI) showed that UK construction activity contracted sharply in November 2025, dropping to a reading of 39.4 - the steepest decline in over five and a half years.
All key sub-sectors - housing, commercial, and civil engineering - all reported significant decreases in activity and new orders, with civil engineering the weakest. Employment levels also continued to fall as firms struggled with weak client confidence, budget uncertainty, and rising costs.
The prolonged downturn is being partly attributed to pre-Budget caution along clients delaying commitments, which has helped stall major work packages and reduce project starts across the country.