Overview
- S&P Global’s survey showed the index fell from 46.4 in January to 44.5 in February, missing the 47.0 forecast and staying below the 50 threshold since January 2025.
- Housebuilding remained the main drag, with the residential activity index sliding to 37.0 for an eighth consecutive monthly fall.
- Commercial work also contracted at 46.5 and civil engineering dropped to 41.0, its softest reading since September.
- Firms reported falling order books linked to sluggish demand, exceptionally wet weather and the steepest input‑cost pressures since July 2025, with purchasing prices rising at a seven‑month high on higher metal costs.
- Business optimism rose to a 14‑month high on prospects for infrastructure and energy projects, contrasting with both the sector’s weakness against the 1.5 million homes target and an all‑sector PMI of 52.9.