March Brings a Glimmer of Hope to UK Construction

The United Kingdom's construction sector witnessed a slight recovery in March, as indicated by the latest report from S&P Global. Despite the sector's continued contraction, the Purchasing Managers' Index (PMI) saw an increase from 44.6 in February to 46.4 in March.

Segment Performance Varies

Civil engineering experienced the most significant downturn, with its contraction rate accelerating to the fastest since October 2020, recording the lowest PMI at 38.8. Residential construction activity was slightly better at 44.7, while commercial building showed a bit more resilience with a PMI of 47.4.

Employment Challenges Persist

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