March Brings a Glimmer of Hope for UK Construction

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

Sector-Specific Performance Highlights Challenges

Civil engineering faced the steepest decline, with its contraction rate accelerating to the fastest pace since October 2020, recording a PMI of just 38.8. Residential construction activity fared slightly better with a PMI of 44.7, while commercial building activity was measured at 47.4.

Employment Trends Reflect Sector Struggles

"The construction sector's difficulties were further underscored by hiring freezes and the non-replacement of departing staff, leading to the fastest rate of job shedding in nearly four-and-a-half years," explained Tim Moore, Economics Director at S&P Global Market Intelligence. This was attributed to a lack of new projects and rising payroll costs squeezing margins.