UK construction fell for 12th month straight in Dec 2025, hitting lowest level since early 2020.

UK construction activity contracted for the 12th straight month in December 2025, reaching its lowest level since early 2020, according to the S&P Global UK construction PMI, which posted a reading of 40.1. All sectors—housing, commercial, and civil engineering—declined sharply, with housebuilding and commercial construction hitting their weakest points since early 2020. While the pace of contraction eased slightly from November, weak client confidence, delayed investments, and reduced demand persisted. Builders cited anticipation of the autumn budget as a key factor. Despite ongoing challenges, some optimism emerged, with firms expecting increased infrastructure spending, lower borrowing costs, and easing inflation to boost demand in 2026.