UK Construction Activity Sees Slight Uptick in March

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

Sector-Specific Performance Highlights

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 showed a PMI of 44.7, while commercial building activities were slightly better at 47.4.

Challenges Ahead for the Construction Sector

Tim Moore, Economics Director at S&P Global Market Intelligence, highlighted the challenges: "A scarcity of new projects, coupled with increasing payroll costs squeezing margins, resulted in hiring freezes and the non-replacement of departing staff in March. This led to the most rapid job shedding in the construction sector in nearly four-and-a-half years."