U.K Construction Sector on a Solid Return Despite January Setbacks

U.K Construction Sector on a Solid Return Despite January Setbacks

U.K Construction Total Activity Index rebounded in February from a slump to 49.2 in January to post a high of 53.3, according to IHS Markit press release. The index signaled a solid increase in construction activity which offset housing slowdowns.

UK Construction PMI

New orders regained momentum as project starts increased in anticipation of improving U.K. economic conditions over the course of the year.

Supplier lead times persisted in February as vendors struggled with transport delays and stronger demand conditions.

 Stretched global supply chains, higher shipping charges, and rising commodity prices led to the sharpest rise in average cost burdens across the construction sector since August 2008.

Residential work registered the strongest growth, although the speed of recovery eased slightly since January.

Although only modest, the rate of job creation was the fastest since March 2019.

U.K stocks are currently declining as the pound gains. FTSE 100 is down 0.45%, GBPUSD is up 0.13%

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