Survey data released by S&P Global showed that activity in the UK construction sector continued to contract during February, marking the fourteenth consecutive month of decline.
The survey indicated that the Construction Purchasing Managers’ Index (PMI) fell to 44.5 points last month, compared with 46.4 points in January, which had been the highest level recorded in seven months.
As is well known, a reading below 50 points reflects a contraction in economic activity within the sector, while a reading above that level indicates growth, according to the Deutsche Presse-Agentur.
The sharp drop in housebuilding activity was a key factor behind the decline in February. In addition, the contraction in commercial construction activity accelerated, while civil engineering was the only segment that recorded a slower pace of decline.
The survey results also showed that the decline in total new business accelerated due to continued weak demand. However, business activity expectations rose to their highest level since December 2024.
At the same time, employment levels remained relatively stable, reflecting an improvement compared to the significant job losses recorded at the end of 2025.
On the other hand, construction companies continued to face significant pressure on profit margins due to a noticeable increase in input costs, with the data showing that the average cost burden rose to its highest level since July last year.
