UK housebuilding activity has reached its lowest point since 2026, as the S&P Global UK construction PMI recorded a reading of 38.4 in June, indicating a continued downturn in the construction sector.

The S&P Global UK services PMI survey indicated a rebound to 52.7 in April, up from 50.5, but the industry faces a "short-lived" recovery due to sharply rising costs.

The UK services industry has experienced a setback, with business activity falling in May for the first time since April 2025, according to the S&P Global UK services PMI survey.

British businesses experienced a second consecutive month of rebound in early 2026, reaching a two-year high in growth. However, jobs in the services sector are being sharply cut, partly attributed to higher taxes imposed by the Labour government, according to an S&P Global UK survey.

The UK construction industry is facing challenges from surging fuel and material costs, leading to a significant drop in output, with the S&P Global UK construction PMI falling to 39.7 in April.