The UK construction sector expanded at the fastest pace in more than two years in July as election-related slowdown proved to be temporary, survey results from S&P Global showed on Tuesday.
The headline S&P Global construction Purchasing Managers' Index rose unexpectedly to 55.3 in July from 52.2 in June. The reading was forecast to fall to 51.0.
The score suggested that total activity extended the growth to five months and also the improvement was the strongest since May 2022.
All three categories of construction posted expansion in July. Housing projects returned to growth. Commercial activity also grew solidly but the fastest growth was seen in civil engineering activity, where the growth rate was the sharpest in almost two-and-a-half years.
The expansion in construction was largely driven by the increase in new orders. The growth in orders was the strongest since April 2022.
Underpinned by rising workloads, firms ramped up purchasing activity and employment rose quickly in July. The increase in purchasing activity was the most pronounced in almost two years.
Suppliers' lead times were broadly unchanged in July, ending a 16-month sequence of improving vendor performance.
Input cost inflation showed signs of picking up as suppliers raised prices amid stronger demand. The increase in input costs was the joint-fastest in 14 months. The rates charged by sub-contractors increased moderately again.
Firms remained strongly optimistic that activity will increase over the coming year but sentiment slid to a three-month low.
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December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.