UK Construction Sector Contracts Further

(RTTNews) - The UK construction sector contracted for the fourteenth consecutive month in February, survey data from S&P Global showed Thursday.

The construction Purchasing Managers' Index dropped to 44.5 from January's seven-month high of 46.4. The score signalled a solid reduction in overall business activity.

The sharp fall in residential building was the main factor behind the setback in February. Commercial construction activity also dropped at a faster pace. Civil engineering was the only sub-sector to register a slower fall in activity.

The survey showed an accelerated decline in total new work due to sluggish demand conditions. On the other hand, business activity expectations rose to the highest since December 2024.

Staffing levels moved close to stabilization, which contrasted to the steep job losses at the end of 2025.

Construction companies again faced pressure on their margins from sharply rising input costs. Data showed that average cost burdens increased the most since July 2025.