British construction activity experienced a resurgence of growth in March, attributed to an increase in sales and a rise in new business inquiries, according to survey data released by S&P Global on Friday.
The Construction Purchasing Managers' Index (PMI) - an indicator of economic health for manufacturing and service sectors - escalated to 50.2 in March from 49.7 in January, surpassing the expected rise to 49.8.
Each PMI score less than 50 points to a contraction, while scores over 50 imply an industry expansion.
Of the three main types of construction, civil engineering emerged as the top performer in March, thanks to an uptick in infrastructure projects and steady demand in the energy sector. Meanwhile, the sectors of house building and commercial construction saw little change from the previous month.
New order rates saw the fastest growth in ten months, while companies downsized their labor forces, albeit marginally.
In terms of cost, transportation expenses pushed input costs higher in March. Despite this, overall inflation rates remained moderate.
Supplier delivery times witnessed a decrease for the thirteenth consecutive month, resulting from improved material availability and suppressed demand.
Tim Moore, Economics Director at S&P Global Market Intelligence, noted a general consensus among construction companies of a widespread resurgence in tender opportunities. This resurgence was influenced by easier borrowing costs and indicators of an economic recovery within the UK during the first quarter of 2024.
