UK Construction Activity Sees Slight Improvement in March

The UK's construction sector experienced a modest uptick in activity during March, as reported by S&P Global. The construction Purchasing Managers' Index (PMI) rose from 44.6 in February to 46.4 in March, indicating a slight recovery despite the sector's continued contraction.

Sector-Specific Performance Highlights

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 and commercial building showed slightly better performance, with PMIs of 44.7 and 47.4, respectively.

Challenges and Job Market Impact

Tim Moore, Economics Director at S&P Global Market Intelligence, highlighted the challenges: "A scarcity of new projects and rising payroll costs have pressured margins, leading to hiring freezes and the fastest job shedding in the construction sector in nearly four-and-a-half years."