UK construction activity slowed further in February, with housebuilding hardest hit, as unusually wet weather compounded ongoing sector challenges.
The S&P Global UK Construction PMI fell to 44.5, down from January’s 46.4, marking the fourteenth consecutive month of contraction despite early-year resilience.
Firms cited weak order books, few new project starts, and “exceptionally wet weather” delaying site work.
Residential construction recorded the steepest decline, with the index at 37, while civil engineering saw a slower fall at 41.
The Glenigan Index showed residential starts down 20 per cent over the three months to the end of February and 31 per cent year-on-year, while non-residential project starts rose by one per cent.
The Met Office reported this winter among the wettest on record since 1836 in parts of the UK, including the West Midlands, Cornwall, and Leicestershire.
England experienced its eighth wettest winter, Northern Ireland its ninth and wettest in ten years.
While rising input costs, particularly for materials such as concrete and insulation, exacerbated by the escalating conflict in the Middle East, alongside labour shortages, planning delays, and broader economic uncertainty, also continue to squeeze margins.
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RSM UK noted wet conditions masked underlying resilience with an uptick expected in March.
Though Kelly Boorman, national head of construction, highlighted planning and viability constraints were limiting housing delivery despite government reforms, while chief economist Thomas Pugh noted rising energy and input costs were threatening affordability, margins, and interest rate decisions.
Pugh said: “It is too early to tell how prolonged the impact will be at this point, but the construction industry is more exposed than other sectors, due to the sensitivity of demand and financing to interest rates, as well as its energy intensive nature.”
Despite these challenges, firms remain cautiously optimistic, with business expectations reaching a 14-month high, supported by forthcoming infrastructure and energy projects.
Glenigan economic director Allan Wilen added: “It’s hoped that drier conditions in the spring will help kickstart activity. However, with a whole host of other adverse domestic and global socioeconomic challenges to surmount, we’ll need to see a significant reversal in current circumstances before we see a meaningful performance uptick.”
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