Phoebus reacts to S&P UK construction figures

05 November 2026

Richard Pike at Phoebus Software to this morning’s S&P PMI UK construction index: S&P Global UK Construction PMI:

“The latest construction figures from S&P show a steep drop in housebuilding during October, the lowest reading since December 2025. High construction and borrowing costs, stretched affordability and low consumer confidence continue to weigh on the sector.

“The OBR’s recent downgrade to housing delivery forecasts underlines the scale of the challenge, with output now expected to fall over the next three years as rising costs and wider economic pressures weigh on construction. The Government’s housing ambitions are increasingly at odds with the outlook for actual delivery.

“Stimulating demand is only half the equation. Housebuilders also need the confidence and financial headroom to bring forward new projects. Without a sustained improvement in affordability and the viability of new schemes, the sector will remain under pressure and the gap between housing targets and delivery will be difficult to close.”