Data from S&P Global showed input cost inflation jumping sharply, marking the largest monthly increase since records began in 1997.
The surge pushed cost levels to their highest point since late 2022, intensifying financial strain on builders and developers.
At the same time, new orders declined at the fastest pace in months, reflecting weakening demand and reduced project pipelines.
The sector’s headline PMI remained below the growth threshold, extending a prolonged contraction despite a slight monthly improvement.
Broader economic conditions, including rising borrowing costs and supply chain delays, have further dampened business confidence.
Some firms reported resilience in infrastructure and energy-related projects, offering limited support amid an otherwise challenging environment.
The wider UK economy also showed signs of slowing momentum, with the composite PMI slipping into near-stagnation territory.
