FX.co ★ UK Construction Output Contracts at Softer Pace

In March 2025, the S&P Global UK Construction PMI rose to 46.4, showing a recovery from February's 57-month low of 44.6 and slightly surpassing market expectations of 46.0. Nevertheless, the index remains well within contraction territory. Civil engineering emerged as the most challenged sector, plummeting to 38.8, marking its most significant decline since October 2020. The residential construction sector (44.7) continued to experience a downturn, although at a reduced rate, while commercial building (47.4) faced its most pronounced decline since January 2021. New order inflows continued to decrease, and job cuts were at their most severe since October 2020. Regarding costs, input cost inflation reached its highest point since January 2023. Business confidence declined to its lowest since October 2023, driven by reduced workloads, high interest rates, and concerns over the economic outlook.