U.K. Construction Activity Back to Growth in February

Construction activity in the United Kingdom expanded in February after a setback at the start of the year, according to the latest data compiled by IHS Markit.

• The headline seasonally adjusted UK Construction Total Activity posted 53.3 last month, up from 49.2 in January. It is also above the 50.0 no-change mark.
• Residential work remained the strongest area of growth, even as the recovery speed eased from the previous month. Delays were reported from adverse weather and supply chain issues.
• Project starts increased in anticipation of improving economic conditions in 2021, while new order volumes increased for the ninth straight month.
• Improving demand is backed by residential development, new opportunities in the commercial segment, and public sector infrastructure spending.
• Optimism in the construction sector is at a five-year high. Reasons cited are the improving order books, and expectations that the vaccine rollout will release pent up demand.