{"id":143369,"date":"2026-04-08T14:11:56","date_gmt":"2026-04-08T14:11:56","guid":{"rendered":"https:\/\/daddyofincome.com\/index.php\/2026\/04\/08\/uk-builders-struggle-as-pmi-shows-unprecedented-cost-inflation\/"},"modified":"2026-04-08T14:11:56","modified_gmt":"2026-04-08T14:11:56","slug":"uk-builders-struggle-as-pmi-shows-unprecedented-cost-inflation","status":"publish","type":"post","link":"https:\/\/daddyofincome.com\/index.php\/2026\/04\/08\/uk-builders-struggle-as-pmi-shows-unprecedented-cost-inflation\/","title":{"rendered":"UK builders struggle as PMI shows unprecedented cost inflation"},"content":{"rendered":"
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British construction firms witnessed an unprecedented rise in cost inflation in March, marking the sharpest month-on-month increase since records began in 1997, according to a survey released on Wednesday. <\/p>\n

Data from S&P Global showed that the UK Construction Purchasing Managers’ Index (PMI) measure of input cost inflation jumped to 70.5 in March, up from 59.5 in February.<\/p>\n

This also represents the highest level recorded since November 2022.<\/p>\n

The surge highlights intensifying cost pressures across the sector, adding to existing economic concerns.<\/p>\n

The rise follows similar trends observed in other industries, with British manufacturers reporting the steepest monthly increase in cost burdens since October 1992 just last week.<\/p>\n

Weak demand and falling new orders<\/h2>\n

The sector also faced a notable decline in demand. New orders dropped at the fastest pace since November last year, reflecting weakening business activity.<\/p>\n

At the same time, earlier signs of optimism regarding future output among construction firms have diminished, indicating a cautious outlook.<\/p>\n

S&P Global\u2019s headline construction PMI remained below the critical 50.0 threshold, which separates growth from contraction for the 15th consecutive month.<\/p>\n

However, the index edged slightly higher to 45.6 in March from 44.5 in February, suggesting a marginal easing in the pace of contraction rather than a recovery.<\/p>\n

Recent official figures offered a somewhat mixed picture of the sector\u2019s performance.<\/p>\n

Construction output rose by 0.2% in January, following a 2% contraction in the final quarter of 2025.<\/p>\n

While the modest increase indicates some stabilisation, it has not been sufficient to offset broader weakness in demand and rising cost pressures.<\/p>\n

Supply chain disruptions and economic pressures<\/h2>\n

According to Tim Moore, economics director at S&P Global Market Intelligence, certain segments, such as infrastructure, particularly energy-related projects, showed signs of improvement.<\/p>\n

However, he noted that the overall near-term outlook for the sector remains challenging.<\/p>\n

Businesses are increasingly concerned about rising inflation, weak economic prospects, and higher borrowing costs.<\/p>\n

Additionally, supply chain conditions deteriorated for the first time since mid-2025.<\/p>\n

This was largely attributed to shipping delays linked to disruptions in the Strait of Hormuz, which have slowed material deliveries and increased operational uncertainty.<\/p>\n

Impact of the Iran conflict<\/h2>\n

The ongoing conflict involving Iran has further compounded difficulties for the construction sector, affecting both confidence and demand.<\/p>\n

The impact has not been limited to construction alone.<\/p>\n

The all-sector PMI, which combines data from manufacturing and services, fell sharply to 49.9 in March, down from 52.9 in February.<\/p>\n

This marks its lowest level since September and signals a broader slowdown in business activity across the UK economy.<\/p>\n

Together, these indicators point to a sector under sustained pressure, with cost inflation, geopolitical tensions, and weakening demand continuing to weigh heavily on construction firms.<\/p>\n

The post UK builders struggle as PMI shows unprecedented cost inflation<\/a> appeared first on Invezz<\/a><\/p>\n

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British construction firms witnessed an unprecedented rise in cost inflation in March, marking the sharpest month-on-month increase since records began in 1997, according to…<\/p>\n","protected":false},"author":1,"featured_media":143370,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-143369","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world-news"],"_links":{"self":[{"href":"https:\/\/daddyofincome.com\/index.php\/wp-json\/wp\/v2\/posts\/143369","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/daddyofincome.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/daddyofincome.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/daddyofincome.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/daddyofincome.com\/index.php\/wp-json\/wp\/v2\/comments?post=143369"}],"version-history":[{"count":0,"href":"https:\/\/daddyofincome.com\/index.php\/wp-json\/wp\/v2\/posts\/143369\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/daddyofincome.com\/index.php\/wp-json\/wp\/v2\/media\/143370"}],"wp:attachment":[{"href":"https:\/\/daddyofincome.com\/index.php\/wp-json\/wp\/v2\/media?parent=143369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/daddyofincome.com\/index.php\/wp-json\/wp\/v2\/categories?post=143369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/daddyofincome.com\/index.php\/wp-json\/wp\/v2\/tags?post=143369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}