London, United Kingdom. Britain’s construction sector contracted for the 14th consecutive month in February, extending its longest downturn since the global financial crisis, a business survey showed. The S&P Global UK Construction Purchasing Managers’ Index fell to 44.5 from 46.4 in January.
PMI remains in contraction
The index stayed below the 50 threshold that separates growth from contraction, where it has remained since the start of 2025. The February reading was also below a median forecast of 47.0 in a Reuters poll of economists.
Optimism improves despite weaker activity
Business optimism rose to its highest level in 14 months. Tim Moore, economics director at S&P Global Market Intelligence, said February’s decline was faster than the average pace seen since the run of sub-50 readings began in January 2025.
House building leads decline
Moore said a sharper downturn in house building was the main factor behind the February setback, following signs of stabilisation at the start of 2026. S&P cited falling order books linked to sluggish market conditions, exceptionally wet weather that disrupted projects, and the steepest rise in cost pressures since July 2025.
Subsectors weaken and policy goals highlighted
The residential building activity subindex fell for an eighth straight month, dropping to 37.0 in February from 39.3 in January, while commercial and civil engineering activity also declined. The sector’s weakness contrasts with Prime Minister Keir Starmer’s target to build 1.5 million homes over a five-year parliamentary term, a rate not achieved since the 1970s.
Construction lags services
The downturn in construction, which accounted for more than 6% of British economic output in 2025, contrasted with a more upbeat picture in the services PMI.
What do you think will be the biggest factor influencing Britain’s construction activity in the coming months?