| Actual | Previous | |
| Index | 44.5 | 46.4 |
Highlights
The February 2026 data suggest that the UK construction sector is experiencing a deepening contraction, driven largely by persistent weakness in housing activity and declining new orders. The construction PMI fell to 44.5, reinforcing the view that construction output remains firmly in negative territory. Residential construction remains the most vulnerable segment, with its index dropping to 37.0, signalling significant pressure in the housing market. This likely reflects a combination of high borrowing costs, cautious household demand, and delayed investment decisions within the property sector.
Commercial construction also weakened, although the pace of decline remains relatively moderate compared with residential activity. Civil engineering showed slight resilience, with contraction slowing, possibly due to ongoing infrastructure-related work. The broader sector is further constrained by weak order books and weather disruptions that slowed project execution during the month.
Despite the current downturn, forward-looking sentiment shows modest improvement. Approximately 42 percent of firms expect output growth in the year ahead, supported by anticipated infrastructure and energy-related projects. However, rising input costsparticularly for materials such as steel, copper, and concretecontinue to erode margins. In essence, the sector reflects a fragile balance between present contraction and cautious optimism about future project pipelines.
Definition
The Construction Purchasing Managers' Index (PMI) provides an estimate of business activity in the UK construction sector for the preceding month based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 170 construction companies. The panel is stratified geographically and by Standard Industrial Classification (SIC) group, based on the regional and industry contribution to gross domestic product. Results are synthesised into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) activity versus the previous month and the closer to 100 (zero) the faster is activity growing (contracting). The data are compiled by the Chartered Institute of Purchasing and Supply (CIPS) and S&P Global.
Description
The survey is based on techniques successfully developed in the USA over the last 60 years by the National Association of Purchasing Management. It is designed to provide one of the earliest indicators of significant change in the economy. The data collected are not opinion on what might happen in the future, but hard facts on what is actually happening at 'grass roots' level in the economy. As such the information generated on economic trends pre-dates official government statistics by many months.