Construction output grows at fastest pace since December 2018

Levels of new work in construction grew at the fastest pace since 2015 in February, while the boom in housebuilding allowed construction output to experience its sharpest rise since December 2018. UK construction companies signalled a return to business activity growth during February, following a nine-month period of declining workloads, according to the latest construction PMI. The latest survey also pointed to the sharpest rise in new orders since December 2015. At 52.6 in February, up from 48.4 in January, the IHS Markit/CIPS UK Construction Total Activity Index registered above the 50.0 no-change value for the first time since April 2019. Additionally, the latest construction PMI signalled that the overall rate of construction output growth was the fastest for 14 months. Survey respondents noted that improved demand had translated into higher levels of business activity in February, particularly in the housing and commercial sub-sectors. There were some reports, however, that severe weather conditions had led to delays on site and acted as a brake on growth.