The downturn in the UK construction sector continued to ease into February, new data on Wednesday showed.
The S&P Global UK construction purchasing managers’ index rose to 49.7 points in February, up from 48.8 points in January. This marks the highest reading since August 2023 and is higher than FXStreet market consensus of 49.0 points.
That said, the index remained below the crucial 50.0 no-change threshold for the sixth month running.
All three main categories of construction activity saw a near-stabilisation of business activity in February, S&P said.
Meanwhile, business optimism improved for the third time in the past four months and was the highest since January 2022.
S&P Global Market Intelligence economics director Tim Moore commented: ‘A stabilisation in house building meant that UK construction output was virtually unchanged in February. This was the best performance for the construction sector since August 2023 and the forward-looking survey indicators provide encouragement that business conditions could improve in the coming months.
‘Total new orders expanded for the first time since July 2023, which construction companies attributed to rising client confidence and signs of a turnaround in the residential building segment. Meanwhile, the degree of optimism regarding year ahead business activity prospects was the strongest since the start of 2022, in part due to looser financial conditions and expected interest rate cuts.’
The survey features a panel of around 150 construction firms in the UK. Responses were collected between February 12 and 28.
Copyright 2024 Alliance News Ltd. All Rights Reserved.