The UK construction industry was “flat as a pancake” in February as the sector’s recession dragged on into 2018, according to the latest survey snapshot.
The Purchasing Managers’ Index for builders rose to 51.4 in the month, up from 50.2 in January.
That was above the 50 point that separates growth from contraction, but the new work index fell again.
“The sector was feeling as flat as a pancake in February with falls in new orders for the second month in a row and with just a marginal rise in overall activity, as ongoing political and economic uncertainty shouldered the blame,” said Duncan Brock of the Chartered Institute of Procurement & Supply.
Civil engineering activity contracted at its sharpest pace for five months, according to the latest survey.
Housebuilding was also weak again, although there was a bounce back for commercial construction, which expanded at the fastest rate since May 2017.
The Office for National Statistics estimates that aggregate construction output fell over the final three quarters of 2017, putting the sector, which accounts for around 6 per cent of GDP, in recession.
There was a drop in output of 0.7 per cent in the three months to December.
“The near-term outlook for the construction sector remains bleak,” said Samuel Tombs of Pantheon.
“Hopes that a Brexit transition deal could be agreed by the end of this month now look forlorn, so businesses will remain reluctant to commit to long-term capital expenditure. Rising mortgage rates will subdue demand for new houses. Meanwhile, public sector investment is set to fall in 2018/19.”
