But contraction in civil engineering and commercial work saw the bellwether S&P Global UK Construction Purchasing Managers’ Index drop below the standstill 50 mark again in June for the six month in a row.

At 48.8 in June the index was up from 47.9 in May and signalled the slowest decline in construction output since the current period of contraction began in January.

House building expanded with a score of 50.7 while civil engineering (44.2)  was the weakest-performing area of construction activity as commercial work decreased at the fastest pace since May 2020 (index at 45.1).

New order books across the construction sector as a whole deteriorated for the sixth successive month in June, with the rate of decline accelerating since May.

Survey respondents commented on fewer tender opportunities and intense competition for new work, reflecting weak overall demand conditions and heightened risk aversion among clients.

Tim Moore, Economics Director at S&P Global Market Intelligence, said: “June data highlighted a sustained downturn in UK construction output, albeit at the slowest pace in six months.

“Shrinking workloads in the commercial and civil engineering segments weighed on total industry activity. Commercial activity fell at the sharpest rate in just over five years.

“On a brighter note, house building was the best-performing area of the construction sector. Higher levels of residential work were recorded for the first time since September 2024 amid some reports of more stable demand conditions.

“The forward-looking survey indicators were weaker than in May. Total new orders fell at a faster pace as many construction companies signalled reduced overall workloads due to unfavourable domestic economic conditions and fragile confidence among clients.

“At the same time, business activity expectations dipped to a two-and-a-half-year low in June. Survey respondents widely cited fewer tender opportunities, rising competition for new work and a projected headwind from subdued business investment during the year ahead.”