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UK construction industry picked up pace in February as solid upturn in civil engineering activity underpinned growth. The Markit/CIPS Construction Purchasing Managers' Index (PMI) edged up to 52.5 in February from 52.2 in the previous month, beating forecasts that had pointed to an unchanged reading.
A solid upturn in civil engineering activity underpinned growth in February and civil engineering replacing house building as the main growth driver. The latest survey revealed a further solid expansion of employment numbers, despite a slowdown in new business growth to its weakest for four months.
Input price inflation little-changed from January’s peak. Cost pressures remained at an eight-and-a-half year high. Suppliers’ efforts to pass on rising energy costs and global commodity prices have been amplified by the weak sterling exchange rate.
February data indicated that construction companies remain upbeat about their growth prospects for the next 12 months, with almost half (48 percent) forecasting a rise in business activity and only 13 percent expecting a decline.
“February’s survey data highlights that the UK construction sector has rebounded from its post-referendum soft patch but remains on a relatively slow growth trajectory," said Tim Moore, Senior Economist at IHS Markit.
