Construction Activity in Great Britain Significantly Decreases

• Construction activity in Great Britain decreased to 44.3 in July.
• The decline was observed across all sectors, including residential construction.
• Improvements in the situation are expected due to lower interest rates.

Construction activity in Great Britain in July 2025 decreased to its lowest level in the last five years. The reason for this decline is primarily the sharp drop in residential construction, which hinders the fulfillment of government goals regarding the reduction of 1.5 million new buildings.

According to S&P Global data, the purchasing managers' index (PMI) for the construction sector in July fell to 44.3, indicating a decrease in activity in the industry, as a figure below 50 signifies a contraction. In June, this index stood at 48.8.

The decline in activity affected all sectors: civil construction, commercial, and residential companies. The largest decrease was recorded in civil construction, which suffered from a reduction in orders for state projects. Residential construction again experienced a downturn after an initial increase in June.

Firms reported a reduction in the demand for new jobs and a decrease in consumer confidence, which led to a halt in projects. Employment in the construction sector decreased last month, and companies began to shorten staff and suspend hiring.

Economists suggest that despite the existing difficulties, there may be potential improvements in the future. A decrease in interest rates in September may ease lending for businesses, and it is also expected that government investments will support the construction industry.

Tags: Europe/Economy