London: UK construction activity fell further in September, although the decline was the smallest recorded since January as the downturn in housebuilding eased slightly.
The latest industry survey showed weaker demand across the sector. New orders fell to 45.9 in September from 47.7 in August. The reading marked a three-month low and reflected subdued demand along with geopolitical tensions and rising input costs.
Housebuilding remained the weakest part of the construction sector during the month. The residential market continued to face pressure even as the pace of decline eased. Civil engineering followed as the second-weakest area.
Commercial construction performed better than the other major sectors. Activity in the segment recorded only a small decline during September. The figures point to continued weakness across construction while showing some signs of a slower contraction.
Input prices also increased during the month. The rate of price growth was the slowest since the outbreak of the Iran war in February. The easing may not continue because higher energy costs could put renewed pressure on businesses.
The survey also pointed to weaker expectations among construction firms. Confidence about future activity fell to its lowest level since May. The weaker outlook comes as companies face softer demand and continued cost pressures.
Official figures provide a broader picture of the sector’s performance. The most recent data showed British construction output was 1.0 percent lower than a year earlier in the second quarter of 2026.
The September survey therefore points to a construction sector that remains under pressure but is contracting at a slower rate than earlier in the year. Housebuilding continues to weigh most heavily while civil engineering and commercial work also remain below growth levels.
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