UK construction industry faces sharp decline amid weak orders and rising costs, ET RealEstate

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According to a survey published on Friday, civil engineering shrunk rapidly last month, which has reduced the fastest rate since 2020 due to weak orders and lack of new infrastructure work, according to a survey published on Friday, which showed optimism.

There was also a concern among firms about an increase in social security contribution paid by employers, weak approaches to the economy and the impact of geopolitical uncertainty.

S&P Global/CIPS UK Construction Purchase Manager Index was at 46.4 in March from 44.6 in March and a average of economists in a Reuters pole was slightly above an average expectation of 46.0.

Nevertheless, the index was linked under 50 dividing line for growth and contraction.

Tim Moore, director of Economics of S&P Global Market Intelligence, said, “March data highlighted a challenging month for UK construction companies, as Tim Moore, director of S&P Global Market Intelligence, said Tim Moore, director of economics, said the order volume has declined rapidly.

'Lack of new projects, with pressure on margin from rising payroll costs, motivated the freeze of employees departing in March and hiring non-replacement.'

The total new orders declined in the third consecutive month, although with firms citing weak demand and market conditions than in February.

The survey showed that only 40 percent of the construction firms are expected to increase production in the upcoming 12 months – the weakest in 17 months.

Civil Engineering Fastly contracted at the fastest rate since October 2020, during the Kovid -19 epidemic, and the commercial building fell at the fastest pace since January 2021.

But the house-beding shrunk rapidly than in February, when he hit at the age of 57 months.

Construction firms reported the fastest speed of job shedding in about four and a half years, which is responsible for high payroll cost and business belief, the lowest since October 2023.

All-sector PMI, which connects services, manufacturing and construction industries, grew from 51.0 last year from 51.0 thanks to a strong performance from the service industry, increasing from 50.0 in February in February.