UK Construction Activity Sees Slight Uptick in March

The United Kingdom's construction sector, while still in contraction, experienced a modest increase in activity during March, according to a recent report by S&P Global. The construction Purchasing Managers' Index (PMI) rose from 44.6 in February to 46.4 in March, indicating a slight improvement.

Challenges Across Different Construction Sectors

Civil engineering faced the most significant challenges, 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, followed by commercial building at 47.4.

Employment and Project Challenges

"A lack of new projects and increasing payroll costs have put pressure on margins, leading to hiring freezes and the non-replacement of departing staff in March. This resulted in the quickest rate of job shedding in the construction sector in nearly four-and-a-half years," explained Tim Moore, Economics Director at S&P Global Market Intelligence.