.jpg)
1 hour ago
3
Article content
(Bloomberg) — UK construction activity unexpectedly declined at a sharper pace in February, according to a closely watched survey, with housebuilding particularly weak.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
S&P Global’s overall construction purchasing managers’ index fell to 44.5, from January’s seven-month high of 46.4. It remained below the 50 threshold indicating contraction and defied economists’ expectations of another rise to 47.
Article content
Article content
Article content
The report provides a sobering read for the Labour government which promised to deliver 1.5 million new homes before the end of the parliament. Housebuilding remained the worse sub-sector in February, shrinking at a faster rate than commercial construction and civil engineering. Its PMI score dipped from 39.3 to 37.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
The results will temper hopes that British builders are on the verge of a recovery after a tumultuous 2025. The construction industry has been shrinking for 14 months and the latest slowdown was faster than the average recorded over that period.
Article content
“A sharper downturn in housebuilding was the main factor behind the setback for UK construction activity in February, following some signs of stabilisation at the start of 2026,” Tim Moore, economics director at S&P Global Market Intelligence, said.
Article content
Across the industry, builders reported weak demand, a lack of new project starts and wet weather delaying some works. Commercial activity also shrunk at a faster pace in February, while the downturn in civil engineering showed signs of easing.
Article content
There were some signs of stabilization, however. Business optimism rose to the highest since December 2024, on the back of new contract wins on big infrastructure projects and hopes of improving domestic conditions.
Article content
Nonetheless, the survey was conducted before US President Donald Trump’s strikes on Iran roiled markets and pushed up energy costs, with likely repercussions for the UK economy.
Article content
Cost inflation continued to hit margins in February. Raw material prices — from concrete and copper, to insulation and steel — rose at the sharpest rate since July 2025.
Article content
English (US)