March Brings a Glimmer of Hope to UK's Construction Sector

In March, the United Kingdom's construction sector experienced a slight uptick in activity, as reported by S&P Global. Despite this, the sector continues to contract, with the construction Purchasing Managers' Index (PMI) increasing 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 pace since October 2020, recording the lowest PMI at 38.8. Residential construction activity was slightly better at 44.7, while commercial building showed a bit more resilience with a PMI of 47.4.

Employment and Cost Pressures

Tim Moore, Economics Director at S&P Global Market Intelligence, highlighted the challenges: "A lack of new projects and rising payroll costs have forced companies into hiring freezes and not replacing departing staff, leading to the fastest job shedding rate in nearly four-and-a-half years."