Latest Story
UK construction downturn continues in March, cost inflation surges
By Michele Maatouk
Date: Wednesday 08 Apr 2026
(Sharecast News) - The downturn in the UK construction sector continued in March amid a surge in input cost inflation as the war in the Middle East pushed up fuel, transportat and raw material prices, according to a survey released on Wednesday.
The S&P Global construction purchasing managers' index ticked up to 45.6 from 44.5 in February but remained below the 50.0 mark that separates contraction from expansion for the fifteenth month in a row.
House building activity declined more quickly than civil engineering and commercial construction, although all three sub-categories recorded slower rates of contraction than in February.
The latest fall in civil engineering activity was the least marked since May 2025, S&P said, which some firms linked to a gradual turnaround in major infrastructure work.
Tim Moore, economics director at S&P Global Market Intelligence, said: "UK construction companies indicated a sustained downturn in business activity during March, led by another steep reduction in residential work. A degree of resilience continued in the commercial and civil engineering segments. There were some reports of a turnaround in infrastructure work, especially in the energy sector.
"March data suggested a challenging near-term outlook for construction activity as total new orders decreased at one of the sharpest rates seen over the past six years. Survey respondents commented on fragile consumer confidence and delayed investment decisions in response to the outbreak of war in the Middle East.
"Construction firms also signalled a recalibration of their output growth forecasts for the year ahead. The drop in confidence during March wiped out the steady improvements in business optimism reported since the Autumn Budget. Escalating inflationary pressures, gloomy domestic economic prospects and higher borrowing costs were widely cited concerns in March."
Moore said international shipping delays meant that supply chain performance deteriorated for the first time since last summer.
"Moreover, fuel surcharges and rising transport costs contributed to a surge in input cost inflation to its highest for more than three years," he said. "The month-on-month acceleration in cost inflation since February was the largest recorded in nearly three decades of data collection."
Article Archive
Free Membership To Digital Look
Discover the full range of Investor's Tools and Services from Digital Look - voted 'Best Research & Information Provider 2007' by Investors Chronicle.
En HeaderFooterDLYou are here: research