2025.04.0410:55:00UTC+00UK Construction Downturn Continues In March

The UK construction sector logged a sustained downturn in March amid rising cost pressures, survey results from S&P Global showed on Friday.

The construction Purchasing Managers' Index climbed to 46.4 in March from 44.6 in February. However, any reading below 50 indicates contraction in the sector.

Among the main categories, civil engineering activity deteriorated at the steepest pace since October 2020, linked to delayed decision-making on new projects and a generally subdued pipeline of major infrastructure work.

The decline in commercial building was the fastest since January 2021, while residential construction activity fell at a slower pace than in February.

New orders continued to decline sharply in March due to sluggish demand conditions. In line with lower new business and output, constructors reduced their workforce numbers for the third successive month, with the rate of job cutting being the steepest since October 2020.

On the price front, input price inflation accelerated to more than a 2-year high in March amid higher payroll costs due to forthcoming rises in National Insurance contributions and the National Minimum Wage.

"Construction companies remained cautious about their year-ahead growth prospects, as fewer sales conversions and a third successive monthly reduction in total new work hit confidence levels," Tim Moore, Economics Director at S&P Global Market Intelligence, said.