FX.co ★ UK Construction Activity Falls Less than Expected

The S&P Global UK Construction PMI rose to 45.6 in March 2026 from 44.5 in February, extending the sector’s run of monthly contraction to more than a year, but beating the median market forecast of 43.9. The survey showed that operating margins remained under pressure amid a sharp acceleration in input cost inflation. Firms reported that the outbreak of war in the Middle East had pushed up prices of energy and key raw materials used in construction projects.

Residential building activity weakened further, with its index falling to 38.2. Civil engineering (44.8) and commercial construction (47.1) also remained in contraction, although both declined at slower rates. Looking ahead, overall business confidence continued to deteriorate. Even so, many companies expected to secure additional work from clients in the energy sector.