UK June construction PMI 48.8 vs 48.4 expected | Forexlive

• Prior 47.9

That’s the sixth month running that total activity has fallen but at least at a lesser pace in June. That being said, new orders is an issue as it continues to decline at a quicker pace on the month. That is leading business optimism to dwindle further to its lowest in two-and-a-half years. S&P Global notes that:

“June data highlighted a sustained downturn in UK
construction output, albeit at the slowest pace in six
months.

“Shrinking workloads in the commercial and civil
engineering segments weighed on total industry activity.
Commercial activity fell at the sharpest rate in just over
five years.

“On a brighter note, house building was the bestperforming area of the construction sector. Higher levels
of residential work were recorded for the first time since
September 2024 amid some reports of more stable
demand conditions.

“The forward-looking survey indicators were weaker
than in May. Total new orders fell at a faster pace as
many construction companies signalled reduced overall
workloads due to unfavourable domestic economic
conditions and fragile confidence among clients.

“At the same time, business activity expectations dipped
to a two-and-a-half-year low in June. Survey respondents
widely cited fewer tender opportunities, rising
competition for new work and a projected headwind from
subdued business investment during the year ahead.”