Britain’s construction industry shrank for the third month in a row in March, with builders cutting jobs at the fastest pace since late 2020, according to new data from S&P Global.
The sector’s purchasing managers’ index (PMI) ticked up slightly to 46.4, from February’s 44.6, but remained below the 50 mark that separates growth from contraction.
Commercial construction was particularly weak, posting its steepest drop in activity since early 2021.
Firms blamed a sluggish economy, high interest rates, and geopolitical uncertainty for dampening client confidence and delaying investment. New orders continued to fall, and hiring slumped again as workloads dwindled.
Civil engineering was hit hardest, with output dropping at its fastest rate in over three years.
S&P’s Tim Moore said the data pointed to “a challenging month” for the sector, with little sign of recovery in the near term. Business optimism also dipped, reaching its lowest level since late 2022.