UK construction downturn deepens in February
By Michele Maatouk
Date: Thursday 05 Mar 2026
(Sharecast News) - The downturn in the UK construction sector deepened in February, dragged lower by residential building, according to a survey released on Thursday.
The S&P Global construction purchasing managers' index fell to 44.5 from a seven-month high of 46.4 in January. A reading above 50.0 indicates expansion, while a reading below signals contraction. Activity fell for the fourteenth month in a row.
Residential building remained the weakest-performing segment in February, with the index at 37.0, while commercial construction activity also fell at a faster pace than at the beginning of the year, but the speed of the downturn was much less marked than across the rest of the construction sector.
The survey found that civil engineering was the only sub-sector to record a slower fall in activity levels last month.
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 2026. Total 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.
"Construction 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.
"Sharply 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."
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