UK Construction Sector Shows Signs of Recovery in March

The United Kingdom's construction sector, while still in contraction, experienced a slight uptick in activity during March, according to a recent report by S&P Global. The construction Purchasing Managers' Index (PMI) rose from 44.6 in February to 46.4 in March, indicating a modest improvement.

Challenges Across Different Construction Segments

Civil engineering faced the steepest decline, with its contraction rate accelerating to the fastest since October 2020, recording the lowest PMI at 38.8. Residential construction activity was slightly better at 44.7, with commercial building following at 47.4.

Employment and Cost Pressures

"The sector is under significant pressure, with a lack of new projects and rising payroll costs leading to hiring freezes and the fastest pace of job shedding in nearly four-and-a-half years," explained Tim Moore, Economics Director at S&P Global Market Intelligence.