UK PMI Construction rose sharply from 48.4 to 54.6 in February, well above expectation of 48.5. It’s also the first expansion reading in three months, and highest since May 2022. S&P Global also noted greater commercial work helped to offset drop in housing activity. Input cost inflation was the lowest since November 2020.
The construction sector returned to growth as commercial work and civil engineering output increased, offsetting a continued weakness in the housing market. Firms attributed the growth to improving global economic conditions and increased client confidence in the commercial segment. Construction companies are increasingly optimistic about the year ahead and expect business to expand, helped by softer inflationary pressures and fewer supplier delays.