UK Construction PMI edges up from January's 4-month low

Total business activity in the UK construction sector increased only marginally in February, revealed the latest survey released this Friday. 

The seasonally adjusted IHS Markit/CIPS UK Construction Purchasing Managers’ Index® (PMI®) came in at 51.4 in February from previous month's 50.2 and also better-than 50.5 expected.

February data pointed to a continuation of the subdued growth conditions reported across the UK construction sector at the beginning of 2018. 

Key points:

   •  New work declines for second month running
   •  Strong input cost inflation persists in February

Tim Moore, Associate Director at IHS Markit and author of the IHS Markit/CIPS Construction PMI® commented: “The construction sector endured another difficult month during February, with fragile business confidence, entrenched political uncertainty and softer housing market conditions all factors keeping growth in the slow lane. Residential work appears on track to experience its weakest quarter since Q3 2016, suggesting that house building is losing its status as the main engine of construction growth.”