Construction hits five-year low as confidence slumps

CONSTRUCTION output hit a five-year low in February as its fastest downturn since May 2020 continued.

- Samuel Norman

S&P Global’s UK Construction Purchasing Managers Index dropped to 44.6 last month, down from 48.1 in January. The figure indicated a steep decline in overall activity, propelled by a sluggish performance in residential buildings, the sector’s weakest performing area.

According to S&P, residential building decreased for the fifth month in a row, sinking to 39.3 — the fastest decline since early 2009. Weak demand, inflated borrowing costs and a lack of new work to replace completed projects drove it.