UK construction industry slump persists, driven by significant decline in residential building activity

UK Construction Sector Experiences Continued Decline in March

In March, the UK construction industry saw a notable decrease in output, though the rate of decline was less severe than in February. Among all categories, residential construction remained the weakest. Survey results revealed that profit margins faced significant strain due to rapidly rising input costs. Many construction firms reported that ongoing conflict in the Middle East contributed to higher prices for fuel, transportation, and raw materials.

The seasonally adjusted S&P Global UK Construction Purchasing Managers’ Index™ (PMI®) registered 45.6 in March, reflecting these challenging conditions.