Construction output in the UK has risen for the sixth consecutive month, according to the latest Markit/CIPS UK Construction Purchasing Managers' Index (PMI).

At 52.5 in February, the figure is slightly up from 52.2 in January.

One key highlight was civil engineering replacing house building as the main growth driver, while residential activity also increase, albeit at the slowest pace for six months.

Commercial building experienced a decline, while the overall rate of construction output growth remained weaker than its post-referendum peak of 54.2 in December 2016.

Participants cited a resilient economic backdrop and a stabilisation in client confidence since the EU referendum as help to increase growth. However, reports suggested that demand had softened so far this year, with new work only slightly increasing at its slowest pace since last October.


Some firms attributed this to a sharp rise on input costs having an adverse impact on decision-making, contributing to delays in completions. The weak sterling exchange rate also continues to drive high prices for a range of materials.

Overall, almost half (48%) of all respondents are positive about their growth prospects over the next 12 months, with 13% expecting a decline. Strong demand for house building is a likely factor to boost output.

Tim Moore, Senior Economist at IHS Markit and author of the Markit/CIPS Construction PMI, said: "February's survey data highlights that the UK construction sector has rebounded from its post- referendum soft patch but remains on a relatively slow growth trajectory. Weaker momentum in the house building sector was a key factor weighing on construction growth, alongside a renewed fall in work commercial projects.

"There was little sign that the UK storms had a material impact on construction growth in February, although some firms noted that longer delivery times for roof tiles had added to supply chain issues. Instead, survey respondents mainly cited an underlying slowdown in sales growth, with the latest rise in new work the weakest for four months. In some cases, construction companies reported that sharply rising input prices had a disruptive impact on contract negotiations.

"February data revealed that input cost inflation remained at levels last seen in the summer of 2008. Suppliers' efforts to pass on rising energy costs and global commodity prices have been amplified by the weak sterling exchange rate."

(LM/MH)