UK Construction Sector Faces Steepest Drop Since May 2020

In February, the United Kingdom's construction sector experienced its most significant output drop since May 2020, as reported by S&P Global. The construction Purchasing Managers' Index (PMI) decreased from 48.1 in January to 44.6 in February. This downturn was particularly noticeable in residential building and civil engineering sectors, where activity saw a marked decrease.

Challenges Across the Board

New orders saw a sharp decline, employment continued its downward trend, and inflationary pressures became more intense. Tim Moore, Economics Director at S&P Global Market Intelligence, highlighted the lack of new work in the house building segment as a significant factor, attributing this to soft market conditions and the impact of high borrowing costs.