UK Construction PMI Falls to 43.6 as Data Centre Demand Defies the Slump
October's reading was the weakest since June, dragged by housebuilding — yet survey respondents reported strong demand for data centre projects, echoed by Skanska's record order book.
The S&P Global UK Construction PMI fell to 43.6 in October from 46.1, the deepest contraction since June, with housebuilding recording its sharpest decline of the year amid borrowing costs and uncertainty. Input cost inflation jumped more than ten points, driven by fuel surcharges and energy.
Against that backdrop, survey respondents still reported strong demand for data centre projects, alongside rising energy and utility workloads. Reuters interviews with Skanska's CEO the same day reinforced the split: the contractor's Q3 construction orders rose 70 percent to SEK 68 billion (including an SEK 11.2 billion US data centre contract), its backlog hit a record SEK 328.3 billion, construction margin improved to 5 percent, and the company said it passes cost inflation through to clients while remaining selective about new data centre developers on financing risk.
The reading confirms a pattern visible in other markets, including Indonesia: data centres and energy infrastructure are the segments still buying through the downturn, with technology budgets in those segments comparatively resilient.