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    UK Construction PMI slump to 39.4: delivery, cost and risk signals for project teams

    December 4, 2025|

    Reviewed by Joe Ashwell

    UK Construction PMI slump to 39.4: delivery, cost and risk signals for project teams

    First reported on The Construction Index

    30 Second Briefing

    UK construction output fell sharply in November as the S&P Global UK Construction PMI dropped to 39.4 from 44.1 in October, its lowest level since May 2020, with new orders contracting at a rate last seen in early 2009 outside the pandemic. Housing (index 35.4), commercial (43.8) and civil engineering (30.0) all recorded their steepest downturns in five-and-a-half years, while employment declined for an 11th consecutive month and subcontractor usage and buying activity both fell markedly. Softer demand improved supplier performance but input costs for electrical components, copper products and insulation continued to rise, keeping margin pressure high despite more manageable inflation.

    Technical Brief

    • Headline S&P Global UK Construction PMI reading of 39.4 in November marks lowest since May 2020.
    • Output volumes have contracted for 11 straight months, signalling sustained under-utilisation of site labour and plant.
    • Around 44% of surveyed firms reported falling new orders in November, versus only 17% reporting growth.
    • New Orders Index, excluding pandemic months, shows the sharpest contraction in workload pipeline since early 2009.
    • Employment fell for the 11th consecutive month, with November’s job losses the steepest since August 2020.
    • Buying activity for construction materials registered its fastest fall for five-and-a-half years, easing supply-chain bottlenecks.
    • Future Activity Index shows only 31% of firms expect higher output in 12 months, against 25% expecting decline.

    Our Take

    With the S&P Global UK Construction PMI at 39.4 and civil engineering weakest among sub-sectors, UK infrastructure contractors are likely to bid more aggressively on copper-intensive grid and energy projects, which in our database are still moving ahead despite domestic building softness.

    The 11-month decline in UK construction employment and reduced subcontractor usage suggest tier‑two civils and M&E firms may look overseas for work, aligning with our coverage of large copper projects such as Glencore’s Collahuasi-linked expansion plans that continue to demand specialist construction capability.

    Among 144 Infrastructure stories in our database, only a handful combine UK construction metrics with a commodity tag like copper, signalling that macro weakness in the UK build cycle is being tracked separately from long‑term copper demand growth driven by global electrification projects.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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