UK Construction Sector Shows Signs of Recovery in March

The United Kingdom's construction sector experienced a slight recovery in March, as indicated by the latest report from S&P Global. The construction Purchasing Managers' Index (PMI) rose from 44.6 in February to 46.4 in March, signaling a modest improvement in activity levels.

Sector-Specific Performance Highlights

Despite the overall uptick, civil engineering faced the steepest decline, with its contraction rate accelerating to the fastest since October 2020, recording a PMI of just 38.8. Residential construction activity showed a PMI of 44.7, while commercial building activities were slightly better at 47.4.

Challenges Ahead for the Construction Industry

"The sector continues to grapple with a lack of new projects and increasing payroll costs, leading to hiring freezes and job cuts. March saw the fastest pace of job shedding in nearly four-and-a-half years," explained Tim Moore, Economics Director at S&P Global Market Intelligence.