With sharp falls in housing, business and civil engineering process, the seasonally adjusted S&P International UK Building Buying Managers’ Index registered 40.1 in December 2025, up from 39.4 in November however beneath the impartial 50.0 worth for the 12th successive month.
The December 2025 studying was once the second-lowest since Would possibly 2020 however was once no less than no longer reasonably as unhealthy as November.
Civil engineering was once the weakest-performing class of building process in December (index at 32.9), regardless of recording a softer charge of contraction than in November. Each housing process (33.5) and business building (42.0) diminished to the best extent since Would possibly 2020.
Anecdotal proof instructed that fragile self assurance amongst shoppers and subdued underlying call for had ended in decrease workloads on the finish of the yr. Many companies additionally famous that behind schedule funding choices forward of the price range in November had weighed on their gross sales pipelines.
December knowledge signalled a pointy decline in general new paintings around the building sector. Diminished volumes of latest industry have been recorded in each and every month of 2025, however the tempo of contraction moderated since November.
Regardless of gradual call for stipulations and a loss of new orders to exchange finished initiatives, the most recent survey pointed to a restoration in industry optimism at UK building firms. Round 37% of the survey panel expect a upward thrust in output ranges all the way through the yr forward, in comparison to 20% that forecast a decline. This signalled the best possible stage of commercial self assurance for 5 months. Plenty of companies cited coming near near new paintings within the utilities sector, associated with investments in water and effort infrastructure. Decrease rates of interest and an growth in home financial stipulations have been additionally reported as elements that would lend a hand to spice up building process over the process 2026.
Mirroring the rage for industry process in December, building firms recorded rather sharp discounts in employment and enter purchasing. Alternatively, the charges of decline moderated since November, which was once partially attributed to progressed projections for workloads within the yr forward.
Tim Moore, economics director at S&P International Marketplace Intelligence, stated: “UK building firms as soon as once more reported difficult industry stipulations and falling workloads in December, however the pace of the downturn moderated from the five-and-a-half-year report noticed in November. Many companies cited subdued call for and fragile consumer self assurance. Regardless of a lifting of Price range-related uncertainty, behind schedule spending choices have been nonetheless cited as contributing to vulnerable gross sales pipelines on the shut of the yr.
“By way of sector, newest knowledge indicated the quickest discounts in housing and business building since Would possibly 2020, whilst civil engineering was once the one phase to sign a slower tempo of decline than within the earlier month.
“General new orders however diminished to a miles lesser stage than in November, whilst industry process expectancies for the yr forward rebounded to a five-month prime. Some survey respondents attributed higher optimism to projections of emerging infrastructure spending, particularly within the utilities sector. There have been additionally hopes that decrease borrowing prices and easing inflationary pressures may just spice up call for around the building sector.
“Provider efficiency in the meantime progressed for the 5th month working, in large part because of decrease enter purchasing. This additionally contributed to a slowdown in buying value inflation to its weakest since October 2024.”
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