UK Construction Activity Sees Slight Uptick in March

The United Kingdom's construction sector experienced a modest recovery in March, as indicated by the latest report from S&P Global. The construction Purchasing Managers' Index (PMI) increased from 44.6 in February to 46.4 in March, signaling a slight improvement in activity levels. However, the sector continues to face significant challenges, with civil engineering experiencing its fastest rate of contraction since October 2020, recording a PMI of just 38.8.

Sector-Specific Performance

Residential construction activity showed a PMI of 44.7, while commercial building was slightly higher at 47.4. Despite these figures, the overall picture remains one of contraction across the sector.

Employment Challenges

"The construction sector is grappling 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.