The Markit / Chartered Institute of Purchasing and Supply Purchasing Managers Index for the construction sector in the United Kingdom declined to 44.5 in February 2026, down from 46.4 in January. The reading fell below the 50 no-change threshold that indicates expansion in the sector and came in below economists' expectations of 47.0.
This marks the fourteenth consecutive month of contraction for UK construction activity. The persistent weakness reflects challenging conditions across multiple segments of the industry, with particular weakness in residential construction.
The residential construction subindex fell sharply to 37.0 in February from 39.3 in January, indicating accelerating deterioration in the housing market. Survey data indicated that residential construction activity remained the main contributor to the overall sector decline.
Survey respondents cited several key drivers of the contraction:
Commercial construction and civil engineering activity also declined during February 2026. The weakness in construction contrasts sharply with stronger performance in other sectors of the UK economy.
While construction continues to contract, the broader UK economy showed greater resilience in February. The all-sector PMI stood at 52.9, indicating continued strength in the services sector, which remains the primary driver of UK economic growth.
Construction represents more than 6% of the United Kingdom's economic output, meaning the sustained contraction has significant implications for overall economic growth. The continued weakness in the sector stands in contrast to the government's target to build 1.5 million homes during the current parliamentary term.
The Markit / Chartered Institute of Purchasing and Supply Purchasing Managers Index measures the performance of the construction sector and is derived from a survey of approximately 170 construction companies. Data is compiled by S&P Global from this limited sample of PMI headline data. Full historic PMI headline data and all other PMI sub-index data and histories are available on subscription from S&P Global.
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