This specific index registered activity at 44.9 in January, the fourth successive month activity had decreased.

Along with weaknesses in civil engineering and commercial construction, this led to overall UK construction work reducing for the first time since February 2024.

The headline index reading fell from 48.1 in January from 53.3 the previous month, the steepest month-on-month contraction since November 2023.

This is also well before the 50.0 threshold that has been maintained since February 2024.

Construction companies cited delayed decision-making by clients on major projects and general economic uncertainty had weighed on business activity at the start of 2025.

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Purchasing activity also decreased for the second month in a row, with weak order books and a lack of new work to replace completed projects.

Construction firms also noted that suppliers were increasingly seeking to pass on rising energy, transportation and staff costs.

"Construction firms noted the fastest fall in residential work for 12 months as market conditions remained somewhat subdued,” commented Tim Moore, economics director at S&P Global Market Intelligence.

“Anecdotal evidence suggested that caution regarding demand for new projects was prevalent at the start of 2025, despite strong policy support for house building and hopes for a longer-term boost to supply via planning reform.”

Though more firms were optimistic in their outlook for business activity than those foreseeing a reduction - 38% against 17% respectively - this was the lowest degree of optimism in the sector since October 2023.