The latest UK Construction PMI data for May shows some signs of improvement, but the industry is still facing challenges. Gareth Belsham, director of Bloom Building Consultancy, shared his thoughts on what the numbers mean.

He says that while two months of slowing decline won’t have anyone celebrating yet, May’s modest improvement confirms that April’s rise was real. Some in the construction sector are starting to hope the worst is behind them.

Commercial property is looking the most positive right now. According to Gareth:

“There’s a spring in the step of those focusing on commercial property. The PMI data shows commercial work is the best-performing area, and we’re seeing some encouraging signs on the project front.”

Recently, some commercial property investors who were unsure about moving forward have decided to go ahead with projects.

However, Gareth warns that the progress is relative:

“Commercial construction activity is still technically shrinking. Its small gains stand out mainly because housebuilding and civil engineering are seeing sharper declines.”

Sentiment across the industry remains mixed. About 39% of contractors expect workloads to improve in the next year, but job cuts continue, which doesn’t suggest a boom is coming soon.

The official data also shows new construction orders jumped over 25% in the first quarter of 2025. As these orders turn into projects, the small improvements in the PMI could develop into real growth.

Gareth sums it up well:

“These are baby steps – but they’re heading in the right direction.”