PMI house-building slump: implications for UK infrastructure project teams
Reviewed by Joe Ashwell
First reported on The Construction Index
30 Second Briefing
UK construction output contracted faster in February as the S&P Global UK Construction PMI fell to 44.5 from January’s 46.4, marking 14 consecutive months below the 50.0 threshold, with residential work weakest at an index of 37.0 and civil engineering at 41.0. New orders have declined every month since January 2025, yet 42% of firms still expect higher output over the next year, citing forthcoming infrastructure and energy projects. Contractors report sharper input cost inflation for concrete, copper, insulation and steel, even as material lead times have shortened for seven straight months.
Technical Brief
- Exceptionally wet February weather delayed on-site works, implying extended preliminaries and disrupted critical-path activities.
- Residential building was the weakest segment, with survey respondents citing particularly thin order books.
- Purchasing activity declined sharply again, indicating contractors are actively running down materials inventories and site stocks.
Our Take
With UK construction PMI stuck below 50 for 14 months, materials suppliers in concrete and aggregates such as Breedon (see its 3 March 2026 Booth Precast acquisition) are likely to lean harder on consolidation and vertical integration to defend margins rather than volume growth.
The divergence between weak current activity readings and a 42% share of firms expecting higher output over the year ahead suggests UK contractors may be positioning for a 2026–27 rebound, which would tighten demand for steel, copper and insulation just as recent infrastructure and sustainability-tagged projects in our database move from design into procurement.
ONS data showing a 1.8% rise in UK construction output in 2025 despite sub-50 PMI readings indicates that larger infrastructure and commercial schemes are partially offsetting house-building weakness, so civils-focused operators and heavy-materials suppliers tied to concrete and steel are likely to see more resilient pipelines than residential specialists.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
Related Articles
Related Industries & Products
Construction
Quality control software for construction companies with material testing, batch tracking, and compliance management.
Mining
Geotechnical software solutions for mining operations including CMRR analysis, hydrogeological testing, and data management.
QCDB-io
Comprehensive quality control database for manufacturing, tunnelling, and civil construction with UCS testing, PSD analysis, and grout mix design management.