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Activity in the UK construction activity remained subdued, despite a slight pick up in March, while a lack of new projects and rising payrolls costs hit staffing levels, a report from S&P Global on Friday showed. The seasonally adjusted S&P Global UK construction purchasing managers’ index posted 46.4 in March, up from a 57-month low of 44.6 in February but still below the neutral 50.0 threshold. It was below FXStreet consensus for a rebound to 46.7. UK construction companies indicated a sustained downturn in business activity, alongside pressure on margins from sharply rising input costs, the report showed. Combined with a drop in new orders, this contributed to the fastest reduction in employment numbers for nearly four-and-a-half years. The civil engineering index at 38.8 was the weakest-performing area of activity in March, with the rate of contraction accelerating to its fastest since October 2020. Residential construction activity declined at a slower pace than in February, but the index was still well inside negative territory at 44.7. Commercial building at 47.4 deceased only moderately in March, but still at its fastest pace since January 2021. Confidence across the sector slipped to its lowest since October 2023 although there was some optimism around the renewable energy sector and hopes of a turnaround in infrastructure workloads. Tim Moore, economics director at S&P Global Market said March was a ‘challenging’ month for UK construction companies as ‘sharply reduced order volumes continued to weigh on overall workloads.’ ‘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. The net result was the fastest pace of job shedding across the construction sector for nearly four-and-a-half years,’ he noted. The S&P Global UK construction PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 150 construction companies. The responses were collected between March 12 and 28. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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