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The UK in February experienced its fastest decline in construction output since May 2020, early in the Covid-19 pandemic, survey results published by S&P Global showed on Thursday. The S&P Global UK construction purchasing managers’ index fell to 44.6 points in February from 48.1 in January, sharply underperforming FXStreet-cited market expectations of an uptick to 49.5 for February. Falling further from the neutral 50-point mark separating growth from contraction, it indicates the pace of decline in construction activity worsened in February. February survey responses indicated weaker demand across the construction sector, S&P Global said. It was the sharpest fall in new order intake since May 2020. Tim Moore, economics director at S&P Global Market Intelligence said: ‘Sharply declining order books rippled through the UK construction sector in February, which led to accelerated reductions in output volumes, employment and input buying. Weak demand conditions were attributed to entrenched caution among clients, against a backdrop of subdued consumer confidence and lacklustre economic performance.’ He added that aside from the pandemic, total industry activity fell at the sharpest pace since December 2019. Further, Moore said: ‘Construction companies remain optimistic overall about their growth prospects for the next 12 months, albeit less so than on average in 2024 amid increasing concerns about the broader UK economic outlook. The were also signs that rising payroll costs and purchasing prices have become a source of anxiety, with the latest increase in overall business expenses the steepest since March 2023.’ The PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 150 construction companies in the UK. The responses were collected between February 10 and 27. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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