Source: Sharecast
The latest S&P Global UK construction purchasing managers index was 47.9 in May, still in negative territory but up from April’s 46.6 and the slowest pace of contraction since January.
It was also ahead of consensus, for 47.2.
A reading below the neutral 50.0 benchmark indicates contraction, while one above it suggests growth.
The British construction sector has been hit by weakening demand amid uncertain economic conditions as well as higher costs.
Jobs were shed across the sector at the sharpest rate since August in May.
House building remained the weakest sector in May, at 45.1, while civil engineering came in at 45.9. Commercial work fell only marginally, however, to 49.5.
However, business activity expectations edged, on hopes that interest rates will continue to come down.
Tim Moore, economics director at S&P Global Market Intelligence, said: “The construction sector continued to adjust to weaker order books in May, which led to sustained reductions in output, staff hiring and purchasing.
“However, the worst phase of spending cutbacks may have passed as total new work fell at a much slower pace than the near five-year record in February.
“Output growth expectations recovered to the highest so far in 2025. Respondents most cited a general improvement in sales projections as well as a potential tailed from failing interest rates.”
The PMI data were collected between 12 and 29 May, with questionnaires sent to a panel of around 150 construction firms.