Five-year slump in construction activity is a wakeup call

August 6, 2025

The steepest fall in construction activity since May 2020 is a serious a wakeup call that government announcements on construction have yet to be delivered, says the Federation of Master Builders (FMB) in response to July’s S&P Global UK Construction PMI data

Brian Berry, Chief Executive of the FMB commented:

“The sharp downturn in construction activity undermines the Government’s stated ambition to deliver 1.5 million new homes and upgrade a further five million homes. Positive government policy reforms to speed up the planning system; introduce greater borrowing flexibility; and upskill the workforce are failing to unlock the much‑needed momentum to drive economic growth. Delivery is key which is why July’s plunge should be setting alarm bells ringing across both industry and government.”

Berry continued: “To get Britain building again consumers need greater confidence in the economy. Small building companies are very reliant on consumer confidence which is why the prospect of further tax increases is such a concern. The proposed planning reforms announced in May need to be given absolute priority with a focus on fast‑track approvals for sites of up to nine houses to help small building companies deliver the homes Britain needs.”

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