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UK construction activity is also likely to be under strain in March 2025, after a steep decline in February when the S&P Global UK Construction PMI dropped to 44.6. This was the lowest since May 2020 due to poor demand, elevated borrowing costs, and the lack of new projects.
In February, house building fell, to a level of 39.3, and civil engineering activity fell sharply as well. Commercial buildings was a little more resilient but fell modestly. New orders fell because of weakening demand and customer wariness in the face of uncertainty about the economy.
For March, the economists forecast the PMI to be below 50, indicating continued contraction, although Trading Economics anticipates a slight pick-up to 46.1. The industry remains plagued by poor demand and costly lending. Although current short-term conditions are unfavorable, optimism is expected to see an improvement in growth shortly, with forecasts that construction output will recover in the next years
