UK Construction Sector Ekes Out First Growth Since August 2023

• Britain's construction sector experienced its first growth since August, with the S&P Global UK Construction Purchasing Managers' Index (PMI) rising to 50.2 in March, surpassing the growth threshold for the first time in seven months. This signals optimism for further growth ahead, supported by improving order books and expectations of easing borrowing costs.
• Despite a slight increase in costs, British construction companies saw the slowest pace of cost inflation in three months in March. However, employment contracted for the third consecutive month, reflecting ongoing concerns about margin pressures and client risk aversion.
• The all-sector PMI, encompassing services, manufacturing, and construction, inched down slightly to 52.6 in March. This suggests a modest slowdown in overall economic activity but still reflects ongoing weak growth following the recession in the second half of 2023.
• The expansion in the construction sector contributes to signs of improvement in the UK economy. Despite challenges, including employment contraction and modest economic growth, cautious optimism prevails regarding the trajectory of the economy, with sectors like construction playing a pivotal role in broader recovery efforts.

(Source: Reuters)