House building saw a major turnaround for February, according to the latest S&P Global UK Construction PMI. The index was 49.8 for the month, up from 44.2 and the highest level since November 2022.
Survey respondents suggested that improving market conditions had gradually contributed to a stabilisation of residential construction work.
In contrast, the commercial segment saw a more subdued performance than in January, with construction companies typically citing hesitancy among clients and constrained budget setting.
Total new work increased marginally in February, thereby ending a six-month period of decline. This appeared to reflect a turnaround in tender opportunities and greater client confidence, especially in the house building segment.
Commenting on the latest figures, S&P Global Market Intelligence economics director Tim Moore said: “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”.
Beard Construction director Jamie Harwood commented: “It is certainly positive to see a boost in new orders as confidence continues to improve across the sector and importantly, among customers too. Even with some of the macro-pressures that still remain, customers are finding the confidence to commit to projects – buoyed by the prospects of the year ahead. We’ve certainly seen this on the ground at Beard, with our secured orders at a record high.
He added: “It’s very positive to see an end to a decline in new work, with greater optimism for both order books and pipelines. At Beard, we continue to see growing demand from regional frameworks, as well as starts on site in many key sectors – including education and in the commercial sector.
“We’re also seeing growing demand within our special projects division and for smaller value projects. Continuing this momentum and nurturing this positivity among customers remains a priority, as does maintaining those strong partnerships with customers and with our supply chain.”
