UK’s February construction PMI likely rose slightly

UK construction PMI is likely to rise slightly to 55.6 in February. There are three subsectors in construction PMI - commercial, housing and civil engineering. Housing, until mid-2015 was the best subcomponent performer, but it has eased and its index is currently at 55.9, as compared with commercial's 56. Civil engineering remains behind at 51.6.

Housing construction might accelerate temporarily as a response to the ruse of buy-to-let purchasers to beat the rise in stamp duty in April on such properties. Commercial construction is expected to ease as it responds with a lag to general economic activity.  Meanwhile, civil engineering might perform better as the government repairs flood defences after the recent floods.