UK Construction Activity Shows Slight Improvement in March

The United Kingdom's construction sector experienced a slight uptick in activity in March, according to a recent report by S&P Global. Despite this improvement, the sector continues to contract, with the Purchasing Managers' Index (PMI) rising from 44.6 in February to 46.4 in March.

Sector-Specific Challenges Persist

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, followed by commercial building at 47.4.

Employment and Cost Pressures

"A lack of new projects and increasing payroll costs have led to hiring freezes and the non-replacement of departing staff in March. This has resulted in the fastest pace of job shedding in the construction sector for nearly four-and-a-half years," explained Tim Moore, Economics Director at S&P Global Market Intelligence.