UK Construction Sector Returns To Growth In March
The British construction activity signalled a renewed expansion in March amid a turnaround in sales pipelines and greater new business enquiries, survey results from S&P Global showed on Friday.
The Construction Purchasing Managers’ Index, or PMI, rose to 50.2 in March from 49.7 in January. The score was expected to increase to 49.8.
Any score below 50 indicates contraction, while a reading above 50 suggests expansion in the sector.
Among the three main categories, civil engineering was the best-performing segment in March on the back of increased work on infrastructure projects and resilient demand in the energy sector. At the same time, house building and commercial construction activity were both broadly unchanged compared to the previous month.
New orders grew at the fastest pace in ten months, while firms reduced workforce numbers, though the rate of job shedding was only marginal.
On the price front, input costs rose further in March amid higher transportation costs. Nonetheless, the rate of inflation was moderate overall.
Suppliers’ delivery times shortened for the thirteenth consecutive month, linked to improved material availability and subdued demand.
“Construction companies generally commented on a broadbased rebound in tender opportunities, helped by easing borrowing costs and signs that UK economic conditions
have started to recover in the first quarter of 2024,” Tim Moore, economics director at S&P Global Market Intelligence, said.
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