FX.co ★ UK Construction PMI Rebounds in January, Easing Sector Contraction

The UK construction sector showed a notable improvement at the start of 2026, with the S&P Global Construction PMI rising to 46.4 in January from 40.1 in December 2025. While the index remains below the 50.0 threshold that separates expansion from contraction, the latest reading points to a slower pace of decline in activity across the industry.

The December 2025 figure of 40.1 had signalled a sharp downturn in construction output, reflecting heightened pressures on the sector. January’s rebound to 46.4 suggests that conditions, while still challenging, have become less severe. The updated data, released on 5 February 2026, will be closely watched by investors and policymakers for signs of whether the sector can sustain this momentum and edge closer to stabilisation in the coming months.

Market participants may interpret the improvement as an early indication that some headwinds for construction—such as weaker demand or project delays—could be easing. However, with the PMI still below 50, the data imply that activity continues to contract overall, underscoring that a full recovery in the UK construction industry has yet to materialise.