UK construction sector continues to struggle - PMI
By Abigail Townsend
Date: Friday 04 Apr 2025
(Sharecast News) - The UK's construction sector faltered in March, a closely-watched survey showed on Friday, as higher costs and a drop in new orders prompted companies to cut jobs.
The S&P Global construction purchasing managers' index came in at 46.4 in March, an improvement on February's multi-year low of 44.6 and marginally ahead of consensus for 46.0.
But it remains well below the neutral 50.0 benchmark. A reading above 50.0 suggests growth while one below it indicates contraction.
The survey showed a drop in output levels for the third consecutive month, alongside "sharply" rising input costs.
The reduction in employment was the fastest in nearly four-and-a-half years, meanwhile, as companies introduced hiring freezes and did not replace departing staff.
Among individual sectors, civil engineering was the poorest performing, falling to 38.8 from 39.3 a month earlier on the back of a subdued pipeline of major infrastructure work and delayed decision-making on new projects.
Commercial building fell from 49.0 to 47.4, the fastest rate of contraction since January 2021.
Residential construction also remained in contraction, at 44.7, although it was a notable improvement on February's 39.3.
Tim Moore, economics director at S&P Global Market Intelligence, said: "March data highlighted a challenging month for UK construction companies, as sharply reduced order volumes continued to weigh on overall workloads.
"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.
"Overall business optimism slipped to its lowest since October 2023."
Data were collected between 12 and 28 March from a panel of around 150 construction companies.
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