The UK construction sector showed signs of recovery in January, with the S&P Global UK construction purchasing managers’ index (PMI) registering 46.4. This figure, while still below the 50 mark that separates growth from contraction, was better than anticipated and suggests the sector is moving away from its recent downturn.
Despite the overall improvement, housebuilding remains a weak area within the construction industry, continuing to face challenges that hinder growth. Other segments of construction contributed to the more positive reading, helping to offset the ongoing difficulties in residential building.
**Why this matters**
The construction sector is a key indicator of economic health and influences related industries such as manufacturing and real estate. An improvement in construction activity can signal broader economic stabilization, while persistent weakness in housebuilding may impact housing supply and affordability. Monitoring these trends helps policymakers and businesses make informed decisions.
Source: NewsData