The S&P Global UK Construction PMI fell to 44.3 in July 2025 from 48.8 in June, marking the steepest contraction in activity since May 2020. The decline signals a significant slump at the start of Q3, driven by sharp drops across all key sectors, particularly in civil engineering and residential building. Weaker demand, site delays, and reduced new business volumes were widely cited by survey respondents, with nearly 29% reporting lower activity. Commercial construction also fell, though at a softer pace. New orders declined for the seventh straight month, with firms noting fewer tender opportunities and weaker client confidence. Expectations for the year ahead improved slightly but remain muted. Input purchases dropped, and supply delays resurfaced for the first time in six months. Costs rose, albeit at the slowest pace since January. Employment continued to shrink, as firms cut back on hiring and subcontractor use. Still, subcontractor rates remained elevated.