That’s quite a disappointment as total industry activity levels fell at
the steepest pace since May 2020. There were marked declines in volumes
of work carried out across all three sub-sectors,
but a fresh drag in residential
building activity stood out on the month. S&P Global notes that:

“Having trended upwards in recent months, our
survey data for July signal a fresh setback for the UK
construction sector, with total industry activity falling
at the sharpest rate since May 2020. Dissecting the
latest contraction, we can see a fresh and sharp drop in
residential building, as well as an accelerated fall in work
carried out on civil engineering projects.

“Forward-looking indicators from the survey imply that
UK constructors are preparing for challenging times
ahead. They’re buying less materials and reducing the
number of workers on the payroll. Expectations also
continue to underwhelm, despite a modest pick-up in
confidence from June’s two-and-a-half-year low.

“Anecdotally, companies reported a lack of tender
opportunities and a hesitancy from customers to
commit to projects. Broader themes of uncertainty, both
domestically but also internationally, will do little to
reignite investment appetites.”