UK March construction PMI 50.7 vs 53.5 expected | Forexlive

• Prior 54.6

This marks just a marginal rise in construction activity, with civil engineering being the best-performing category. Residential building work fell once again, marking a fourth straight monthly decline and that weighed on housing activity. S&P Global notes that:

“UK construction companies experienced a sustained
rebound in output levels during March as work on civil
engineering and commercial projects picked up for the
second month running. Improved tender opportunities
were also reflected in an upturn in new orders since
February and the strongest rate of job creation for five
months.

“A sharp and accelerated decline in house building was
the main area of concern in March. Cutbacks to new
residential projects in the wake of subdued demand
and rising interest rates contributed to the sharpest fall
in housing activity across the construction sector for
almost three years.

“Despite worries about the near-term outlook for
housing activity, expectations for total construction
output during the year ahead were relatively upbeat in
March. Growth projections were boosted by the fastest
improvement in suppliers’ delivery times for more than
a decade. Survey respondents often cited improved
availability of construction inputs and subsequent
hopes that purchasing price inflation would moderate in
the months ahead.”