UK construction slump deepens as rainy weather dampens hopes of recovery

The UK’s construction slump deepened last month in a setback for the sector following signs of improvement at the start of 2026, with housebuilding remaining a weak spot and firms blaming rainy weather for delays.

The industry – which incorporates home building, commercial construction and civil engineering – has been grappling with a more than year-long decline.

The S&P Global UK construction purchasing managers’ index (PMI) showed a reading of 44.5 in February, down from January’s seven-month high of 46.4.

Any reading above the 50.0 threshold indicates that activity in the industry is increasing, while anything below means it is contracting.

February’s figure marks the 14th month in a row that activity across the sector has fallen.

The latest survey marks a setback for builders after signs that they were pulling themselves out of a slump in January.

Residential building remained the weakest-performing sub-sector with a score of 37.0, and the rate of decline accelerating from the month before.

Commercial building, which includes things like offices and warehouses, also declined at a quicker rate, while civil engineering work declined at a slower pace.

There was a sharp decline in the level of new work coming in for businesses in February, although there were some reports of opportunities opening up for infrastructure and energy sector work.

Some firms also said wet weather during the month delayed some work on construction sites.

This winter was the wettest on records for the counties of Cornwall, Leicestershire and the West Midlands, according to provisional figures from the Met Office.

Tim Moore, economics director at S&P Global Market Intelligence, said: “A sharper downturn in house building was the main factor behind the setback for UK construction activity in February, following some signs of stabilisation at the start of 2026.

“The reduction in output was largely due to sluggish demand conditions, but some firms also noted that exceptionally wet weather had disrupted construction projects.”

But he added that construction firms were “hopeful of a turnaround” over the year ahead, with optimism levels hitting a 14-month high last month.

Matt Swannell, chief economic adviser to the EY Item Club, said: “In recent times, the PMI has provided a much too pessimistic reading on construction sector activity.

“This might worsen over the next few months, with corporate caution likely to rise as companies wait to see how the conflict in the Middle East progresses and monitor the implications for the price and availability of energy and other raw materials.

“The PMI could deteriorate further over the next few months if the conflict proves prolonged.”