Despite the fourth consecutive month of construction activity, residential work has shown a degree of elasticity in April, with shrinkage so far reduced to the least elasticity.
This is according to the latest Standard & Poor’s Global Construction PMI in April, which shows that the reduction in residential work activity is the slowest among the three subcategories of construction work (commercial and civil engineering in other fields).
April 46.6, the title – a seasonally adjusted index tracks changes in industry activity – maintained a constant value below 50.0, but rose slightly from 46.4 in March, and pointed to the slowest decline in output levels in three months.
The shrinkage rate of residential jobs has lowered it to 47.1, with the lowest shrinkage rate so far in 2025.
Business work (45.5) has declined for the fourth consecutive month, with the decline accelerating to its fastest since May 2020.
Construction companies have broadly pointed out that business uncertainty and concerns about the broader economic outlook in the UK have exacerbated customer demand.
Earlier this week, more positive prospects for residential work can also be seen in Glenigan’s latest data. Glenigan’s construction index showed that residential homes began to rise 24% in the quarter and a 22% year-on-year increase, indicating increased confidence in the industry.
Overall, the value of basic work that started on-site work rose 7% in the last quarter, and remained 3% from last year’s level, Glenigan insisted that despite challenges elsewhere, it was a “mark of resilience.”
