The S&P Global UK Construction PMI recorded a reading of 46.6 in April, below the 50.0 no change value.

However, this was slightly above the 46.4 reading registered in March.

Residential was the most resilient sector within construction for April, with the rate of contraction easing to its least marked reading in 2025 at 47.1.

Taking positives, S&P Global Market Intelligence economics director Tim Moore highlighted how easing reductions in residential work had eased the decline to its slowest in three months.

"Despite a sharp and accelerated fall in input buying, strong cost pressures persisted in April,” said Tim.

“Overall input price inflation eased only slightly from March's 26-month peak.

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“Survey respondents commented on rising prices paid for a range of raw materials, as well as efforts by suppliers to pass on greater payroll costs.”

Regardless, residential construction was still in contractionary territory and Shawbrook managing director of development finance Terry Woodley attributed this to both a lack of demand and wider economic concerns.

“Whilst wider economic concerns are still very much present, the pieces are in place for a strong second half of the year,” added Terry.

"Property developers have already responded favourably to the additional support, with Shawbrook’s research finding that 61% of developers believe the residential market will improve this year.”

However, some are less optimistic.

Aldermore Bank head of energy and infrastructure Lauren Pamma pointed to global uncertainty as adding to pre-existing causes of concern, such as stagnant demand, rising interest rates and delayed decision making.

“We’re beginning to see the fallout from the ongoing cross-border tariff war which will no doubt disrupt supply chains and impact prices further moving forwards,” said Lauren.

“The outlook still remains unclear, and with developments emerging every day, SMEs will be monitoring the geopolitical landscape closely to see how the construction sector will be impacted.”