{"id":897909,"date":"2026-04-09T08:13:20","date_gmt":"2026-04-09T13:13:20","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2026\/04\/09\/orders-for-new-work-plummet-as-middle-east-conflict-dents-confidence\/"},"modified":"2026-04-09T08:13:20","modified_gmt":"2026-04-09T13:13:20","slug":"orders-for-new-work-plummet-as-middle-east-conflict-dents-confidence","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2026\/04\/09\/orders-for-new-work-plummet-as-middle-east-conflict-dents-confidence\/","title":{"rendered":"Orders for new work plummet as Middle East conflict dents confidence"},"content":{"rendered":"
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Total new orders for construction firms have fallen at their fastest rate since last November amid client fears over the Middle East conflict.<\/span><\/p>\n

A drop in residential work \u2013 continuing an ongoing trend \u2013 led to contractors reporting a \u201csustained downturn\u201d in activity in March, S&P\u2019s UK Construction Purchasing Managers\u2019 Index showed.<\/span><\/p>\n

\u201cSurvey respondents commented on fragile consumer confidence and delayed investment decisions in response to the outbreak of war in the Middle East,\u201d said Tim Moore, economics director at S&P Global Market Intelligence.<\/span><\/p>\n

The data is based on responses to questionnaires sent to a panel of about 150 construction firms, which were returned before news of today\u2019s two-week ceasefire.<\/span><\/p>\n

Lower volumes of new work have been recorded in each month since January 2025, with the latest reduction \u201cattributed to rising risk aversion among clients in response to elevated global economic uncertainty\u201d, according to S&P.<\/span><\/p>\n

The report says: \u201cMany firms noted that the conflict in the Middle East had negatively impacted confidence among clients.\u201d<\/span><\/p>\n

The PMI Index \u2013 which traces changes in total industry activity \u2013 scored 45.6 in March, up from 44.5 in February. That marks the 15th month in a row in which the number has been below 50, which indicates activity is shrinking, while scores above 50 point to growth.<\/span><\/p>\n

Housebuilding activity (with a score of 38.2) again fell more quickly than civil engineering (44.8) and commercial construction (47.1), although all three subcategories recorded slower rates of contraction than in February, S&P said.<\/span><\/p>\n

Separate government data on building materials, published by the Department for Business and Trade today (8 April), revealed that deliveries of bricks were down by 18.3 per cent in February compared with same month in 2025.<\/span><\/p>\n

S&P said rising fuel, transportation and raw material prices due to the Middle East conflict are also putting margins under \u201cconsiderable pressure\u201d.<\/span><\/p>\n

Nearly half of S&P\u2019s survey panel (48 per cent) reported an increase in their average costs during March, while only 3 per cent saw a drop. <\/span>Construction firms have also revised their growth forecasts in light of the current economic climate.<\/span><\/p>\n

\u201cThe drop in confidence during March wiped out the steady improvements in business optimism reported since the Autumn Budget,\u201d S&P said.<\/span><\/p>\n

\u201cEscalating inflationary pressures, gloomy domestic economic prospects and higher borrowing costs were widely cited concerns in March.\u201d<\/span><\/p>\n

Firms also reported \u201csharp cutbacks to subcontractor usage and purchasing activity in response to reduced workloads\u201d, according to S&P.<\/span><\/p>\n

Nick Cattini, specialist construction and infrastructure partner at business advisory firm RSM UK, said the survey suggested the industry was grappling with \u201csignificant headwinds against a weak economic backdrop\u201d.<\/span><\/p>\n

But he added: \u201cWhile there is little immediate encouragement, the UK construction sector has a track record of resilience through volatile cycles.<\/span><\/p>\n

\u201cA commitment to major long-term investment in defence, energy and water from the government may go some way to mitigating the declines in confidence, while the longer-term impact of the conflict on the sector remains to be seen.\u201d<\/span><\/p>\n<\/div>\n<\/div>\n

Read More<\/a>
\n James Wilmore<\/p>\n","protected":false},"excerpt":{"rendered":"

Total new orders for construction firms have fallen at their fastest rate since last November amid client fears over the Middle East conflict. A drop in residential work \u2013 continuing an ongoing trend \u2013 led to contractors reporting a \u201csustained downturn\u201d in activity in March, S&P\u2019s UK Construction Purchasing Managers\u2019 Index showed. \u201cSurvey respondents commented<\/p>\n","protected":false},"author":1,"featured_media":897910,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3027,24699],"tags":[],"class_list":["post-897909","post","type-post","status-publish","format-standard","has-post-thumbnail","category-orders","category-plummet"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/897909","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=897909"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/897909\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/897910"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=897909"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=897909"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=897909"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}