Close Menu
Core Bulletin

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Jayden Reed injury update: Packers WR dealing with foot sprain, ‘hopeful’ to be back before Week 1

    August 10, 2025

    European allies call for more pressure on Russia ahead of Trump-Putin talks

    August 10, 2025

    ‘I’m collateral damage’: ex-minister Tulip Siddiq on her Bangladesh corruption trial | Politics

    August 10, 2025
    Facebook X (Twitter) Instagram
    Core BulletinCore Bulletin
    Trending
    • Jayden Reed injury update: Packers WR dealing with foot sprain, ‘hopeful’ to be back before Week 1
    • European allies call for more pressure on Russia ahead of Trump-Putin talks
    • ‘I’m collateral damage’: ex-minister Tulip Siddiq on her Bangladesh corruption trial | Politics
    • Puppy peril: that dog you want to buy online may be a scam | Money
    • Why You Need an Outdoor Air Quality Monitor (2025)
    • Tracee Ellis Ross on Creating ‘Solo Traveling,’ Teases Season 2
    • Project Runway Is Back—Can It Finally Produce a New Fashion Star?
    • ‘Soul-destroying’: Samaritans volunteers blindsided by proposed closures | Charities
    Sunday, August 10
    • Home
    • Business
    • Health
    • Lifestyle
    • Politics
    • Science
    • Sports
    • Travel
    • World
    • Technology
    • Entertainment
    Core Bulletin
    Home»Politics»UK construction activity in July falls at steepest rate since Covid | Construction industry
    Politics

    UK construction activity in July falls at steepest rate since Covid | Construction industry

    By Liam PorterAugust 6, 2025No Comments4 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Telegram Email
    UK construction activity in July falls at steepest rate since Covid | Construction industry
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Activity in the UK construction sector fell last month at the sharpest rate since the height of the Covid pandemic amid a collapse in housebuilding, underscoring the challenge facing the government to meet its 1.5m new homes target.

    The figures from S&P Global Market Intelligence showed activity fell in July at the steepest pace since May 2020, during the first UK coronavirus lockdown.

    The data provider said a sharp drop in residential building pulled down its monthly purchasing managers index (PMI) for the UK construction sector as a whole, alongside a plunge in civil engineering and a softer downturn in commercial property.

    Compiled from a survey of about 150 construction companies, the survey is closely monitored by the Treasury and the Bank of England for early warning signs from the economy.

    Threadneedle Street is widely expected to cut borrowing costs on Thursday, with financial markets putting the odds of a quarter-point reduction at 95%, amid growing economic concerns. Unemployment is rising, inflation is sticky, output shrank in April and May, and global trade is reeling from Donald Trump’s latest round of punitive country-specific tariffs, which are due to come into force on Thursday.

    Figures published on Tuesday showed that last month the UK services sector recorded its biggest drop in new orders in almost three years.

    Joe Hayes, a principal economist at S&P Global Market Intelligence, said: “Forward-looking indicators from the survey imply that UK constructors are preparing for challenging times ahead.

    “Anecdotally, companies reported a lack of tender opportunities and a hesitancy from customers to commit to projects. Broader themes of uncertainty, both domestically but also internationally, will do little to reignite investment appetites.”

    The headline UK construction PMI fell from 48.8 in June to 44.3 in July, on a scale where a reading of 50.0 separates growth from contraction. The housing activity index, a subcomponent of the overall score, fell from 50.7 in June to 45.3 in July.

    The figures will raise fresh questions about Labour’s target of building 1.5m new homes by the end of the parliament. Housing experts have said the goal is unlikely to be met, while industry bosses have suggested that the government significantly overestimated how many new homes could be built.

    The government is pushing to drive up housebuilding through changes to planning rules, proposals for a new generation of new towns, and £39bn of additional funding for social housing.

    However, analysts warn that the building trade is struggling with crippling labour shortages and other mounting economic headwinds that could stifle investment in housebuilding, including stubborn inflationary pressures and tax rises such as April’s jump in employers’ national insurance contributions (NICs).

    Matt Swannell, the chief economic adviser to the EY Item Club, said: “Businesses will continue to face a difficult operating environment as labour costs remain high due to ongoing labour shortages, as well as higher NICs and national living wage.

    skip past newsletter promotion

    Sign up to Business Today

    Get set for the working day – we’ll point you to all the business news and analysis you need every morning

    Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply.

    after newsletter promotion

    “The outlook for housebuilding in particular is mixed as the effects of planning reforms are counter-balanced by elevated construction costs and labour market shortages.”

    There is mounting speculation about tax rises in Rachel Reeves’ autumn budget, despite business groups warning that further increases could hit the chancellor’s ambition to drive up economic growth.

    On Wednesday the National Institute of Economic and Social Research said the chancellor could be facing a shortfall in the public finances worth up to £50bn at the autumn budget.

    However, ministers are hopeful that Britain’s economy could turn a corner, with support from further Bank of England rate cuts easing some of the financial pressure on households and businesses. Financial markets anticipate at least two further reductions in borrowing costs by December 2026, taking the base rate to 3.5%.

    Elliott Jordan-Doak, a senior UK economist at the consultancy Pantheon Macroeconomics, said: “We still think the fundamentals point to sentiment in the construction sector gradually improving in the coming months.

    “The Bank of England will likely cut interest rates in August, reducing borrowing costs for businesses, and the shock from tariff uncertainty will continue to fade. Moreover, the government’s focus on investment spending and planning reforms should also provide support to the construction industry. The PMI should recover over the coming months.”

    Activity construction Covid falls industry July rate steepest
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Liam Porter
    • Website

    Liam Porter is a seasoned news writer at Core Bulletin, specializing in breaking news, technology, and business insights. With a background in investigative journalism, Liam brings clarity and depth to every piece he writes.

    Related Posts

    ‘I’m collateral damage’: ex-minister Tulip Siddiq on her Bangladesh corruption trial | Politics

    August 10, 2025

    Staff at UK’s top AI institute complain to watchdog about its internal culture | Artificial intelligence (AI)

    August 10, 2025

    July yields fastest rate of UK house price rises this year, says lender | House prices

    August 10, 2025

    Foreign criminals to face deportation after sentencing under new plans

    August 10, 2025

    Food delivery riders banned from luxury flats in London | Couriers/delivery industry

    August 10, 2025

    Waiter brings legal action against the Ivy over share of tips and service charge | Hospitality industry

    August 10, 2025
    Add A Comment
    Leave A Reply Cancel Reply

    Medium Rectangle Ad
    Don't Miss
    Sports

    Jayden Reed injury update: Packers WR dealing with foot sprain, ‘hopeful’ to be back before Week 1

    August 10, 2025

    Imagn Images The Green Bay Packers’ leading receiver last season, Jayden Reed, missed the team’s…

    European allies call for more pressure on Russia ahead of Trump-Putin talks

    August 10, 2025

    ‘I’m collateral damage’: ex-minister Tulip Siddiq on her Bangladesh corruption trial | Politics

    August 10, 2025

    Puppy peril: that dog you want to buy online may be a scam | Money

    August 10, 2025
    Our Picks

    Reform council confirms ‘patriotic’ flag policy

    July 4, 2025

    Trump references bankers with antisemitic slur in Iowa speech to mark megabill’s passage – as it happened | Donald Trump

    July 4, 2025

    West Indies v Australia: Tourists bowled out for 286 in Grenada Test

    July 4, 2025

    Beards may be dirtier than toilets – but all men should grow one | Polly Hudson

    July 4, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo

    Subscribe to Updates

    Medium Rectangle Ad
    About Us

    Welcome to Core Bulletin — your go-to source for reliable news, breaking stories, and thoughtful analysis covering a wide range of topics from around the world. Our mission is to inform, engage, and inspire our readers with accurate reporting and fresh perspectives.

    Our Picks

    Jayden Reed injury update: Packers WR dealing with foot sprain, ‘hopeful’ to be back before Week 1

    August 10, 2025

    European allies call for more pressure on Russia ahead of Trump-Putin talks

    August 10, 2025
    Recent Posts
    • Jayden Reed injury update: Packers WR dealing with foot sprain, ‘hopeful’ to be back before Week 1
    • European allies call for more pressure on Russia ahead of Trump-Putin talks
    • ‘I’m collateral damage’: ex-minister Tulip Siddiq on her Bangladesh corruption trial | Politics
    • Puppy peril: that dog you want to buy online may be a scam | Money
    Facebook X (Twitter) Instagram Pinterest
    • About Us
    • Disclaimer
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions
    © 2025 Core Bulletin. All rights reserved.

    Type above and press Enter to search. Press Esc to cancel.