UK construction PMI falls to lowest since 2020 as house-building plummets

Business and Finance Business and Finance

Thu, March 6, 2025

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UK construction PMI falls to lowest since 2020 as house-building plummets

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UK construction PMI falls to lowest since 2020 as house-building plummets

^{Published on 2025-03-06 11:01:00 - Reuters}

Britain's construction sector contracted sharply in February, with residential house-building declining at one the fastest rates since 2009 due to weak demand and high borrowing costs, according to a survey published on Thursday.

The UK construction sector experienced a significant downturn in February, with the S&P Global/CIPS construction Purchasing Managers' Index (PMI) dropping to 49.7, marking the lowest level since May 2020. This decline was primarily driven by a sharp fall in house building, which saw its most significant drop since the initial lockdown in May 2020, due to reduced demand and higher borrowing costs. Commercial construction also contracted, while civil engineering was the only sector to show slight growth. The report highlighted that the construction industry is facing challenges from high interest rates, client hesitancy, and a general economic slowdown, leading to reduced workloads and a cautious approach to new projects. Despite these setbacks, there was a slight increase in optimism about future business activity, although this was tempered by ongoing concerns about the economic environment.

Read the Full Reuters Article at:
[ https://www.reuters.com/world/uk/uk-construction-pmi-falls-lowest-since-2020-house-building-plummets-2025-03-06/ ]

Contributing Sources

Reuters

N@N

UK construction PMI falls to lowest since 2020 as house-building plummets