[ad_1]
\n<\/p>\n
The bellwether S&P Global UK Construction Purchasing Managers\u2019 Index (PMI) registered 44.5 in February \u2013 down from January\u2019s seven-month high (46.4) and the 14th consecutive monthly fall.<\/p>\n
Residential building remained the weakest-performing segment in February (index at 37.0) and the rate of decline accelerated since January.<\/p>\n
Commercial construction activity (46.5)also decreased at a faster pace than at the beginning of the year, but the speed of the downturn was much less marked than seen across the rest of the construction sector.<\/p>\n
Civil engineering was the only sub-sector to record a slower fall in activity levels during February. Although still sharp, the latest index reading (41.0) pointed to the slowest rate of contraction since September 2025.<\/p>\n
On a brighter note business activity expectations improved to the highest since December 2024. Around 42% of the survey panel forecast a rise in output levels during the year ahead, while only 12% anticipate a decline.<\/p>\n
Construction companies again faced pressure on their margins from sharply rising input costs. February data signalled the steepest rise in average cost burdens since July 2025.<\/p>\n
Many firms noted higher prices paid for items such as concrete, copper, insulation and steel.<\/p>\n
Tim Moore, Economics Director at S&P Global Market Intelligence, said: \u201cA sharper downturn in house building was the main factor behind the setback for UK construction activity in February, following some signs of stabilisation at the start of 2026.<\/p>\n
\u201cTotal industry activity has decreased in each month since January 2025 and the latest decline was faster than seen on average over this period. The reduction in output was largely due to sluggish demand conditions, but some firms also noted that exceptionally wet weather had disrupted construction projects.<\/p>\n
\u201cConstruction companies were hopeful of a turnaround in business activity over the year ahead, with optimism levels hitting a 14-month high in February. This was often linked to forthcoming new projects in the infrastructure and energy sectors, as well as projected improvements in broader economic conditions.<\/p>\n
\u201cSharply rising input costs were a challenge in February. The rate of purchasing price inflation hit a seven-month high as suppliers passed on rising raw material costs,especially metals.\u201d<\/p>\n<\/p><\/div>\n