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UK Construction Contracts Again, Hope Lingers for 2026

1/7/2026

50 9 Full Breakdown

Summary

Story summary

Britain’s construction sector contracted for the 12th consecutive month in December.
The PMI fell to 40.1, signaling ongoing contraction.
Housebuilding dropped to 33.5, the weakest since May 2020.
Optimism persisted, with 37% of companies expecting output to rise in the coming year.
Economists expect modest growth in 2026 because of risks from government spending priorities and a new mansion tax affecting the housing market.

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Story summary

Britain’s construction sector contracted for the 12th consecutive month in December.
The PMI fell to 40.1, signaling ongoing contraction.
Housebuilding dropped to 33.5, the weakest since May 2020.
Optimism persisted, with 37% of companies expecting output to rise in the coming year.
Economists expect modest growth in 2026 because of risks from government spending priorities and a new mansion tax affecting the housing market.