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The Markets
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Builders and building materials

Construction industry grows for first time in seven months 

Britain's construction industry has shifted from contraction to growth for the first time in seven months.

The S&P Global UK Construction PMI lifted from 49.7 in February to 50.2 in March, rising above the 50 mark which separates contraction from growth.

Today's figures also represent a beat compared to the market consensus of 50, highlighting the strength of the UK economy's recovery.

Martin Beck, the chief economic advisor to the EY ITEM club, said: "The latest construction index adds to signs that the economy returned to growth in Q1 2024, following the mild technical recession in the second half of last year.

"The impact of public sector strikes will cap how much GDP grew in the first quarter, but the EY ITEM Club thinks a combination of lower inflation, rising real incomes and actual and prospective cuts in taxes and interest rates should see momentum in the economy continue to build this year."

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