Housing drags down fledgling construction recovery | Construction Enquirer News
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Buyers report return to accelerated downturn but still hopeful for year ahead
The bellwether S&P Global UK Construction Purchasing Managers’ Index (PMI) registered 44.5 in February – down from January’s seven-month high (46.4) and the 14th consecutive monthly fall. Residential building remained the weakest-performing segment in February (index at 37.0) and the rate of decline accelerated since January. 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. 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. 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. 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. Many firms noted higher prices paid for items such as concrete, copper, insulation and steel. Tim Moore, Economics Director at S&P Global Market Intelligence, said: “A 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 202...
