UK construction shrank faster in October. The S&P Global UK Construction PMI fell to 43.6, down from 46.1 in September. Any reading below 50 means activity is falling, and this is the 22nd month in a row below that line.
Housebuilding was the weakest part of the industry. For subcontractors, the bigger worry may be cash. Work is slowing, but costs are not.
01What the construction PMI showed in October
According to S&P Global, activity fell at the fastest pace since June. New work also fell at the sharpest rate since June.
Housebuilding scored 35.1, its lowest reading since December 2025. Civil engineering scored 45.9 and commercial work 46.3. Both were still shrinking, but more slowly.
Tim Moore is economics director at S&P Global Market Intelligence. He said firms reported "severe headwinds in the house building sector from rising borrowing costs, weak consumer confidence and elevated economic uncertainty". He added that there was strong demand for data centre projects.
02Why costs matter as much as orders
Input costs rose at the fastest rate since June. Firms reported fuel surcharges and higher prices for energy, aggregates, concrete, electrical items and steel.
Borrowing costs are rising too. The Bank of England raised Bank Rate to 4% on 5 November. Its next decision is due on 17 December.
So many trades face fewer new jobs while wages and materials cost more. When a main contractor pays slowly, that gap has to be funded from somewhere.
03What subcontractors can do now
Start with the money you are already owed. Check every application for payment, every retention and every deduction you dispute.
Invoice finance can turn some of that money into cash sooner. But construction payments are harder to fund than ordinary invoices, and not every provider will do it.
Our guide explains how invoice finance works for contractors, what lenders check and when a short-term loan fits better. If you need to bridge a gap this winter, talk to us about growth finance.
