UK construction firms experience slowdown in growth in March.

April 5, 2017

The UK construction purchasing-managers’ index  from Markit and the Chartered Institute of Procurement and Supply (CIPS)  slipped to a seasonally adjusted 52.2 in March from 52.5 in February and against market consensus for a reading of 52.4 the survey revealed on Tuesday 4th April.

March data revealed that a slowdown in growth was seen across the UK construction sector, led by a weaker rise in residential building activity. Only a modest increase in new work contributed to employment levels slowing to a three-month low but remaining in growth mode. The latest survey also found that construction companies remain relatively upbeat about their near-term growth prospects, partly reflecting a stabilisation of client confidence from the post-referendum lows seen in 2016. Markit found optimism regarding year-ahead business activity picked up in March to its second-highest since December 2015.

Senior IHS Markit economist Tim Moore said: “UK construction firms experienced a growth slowdown in March, with the loss of momentum centred on house building. A weaker trend for residential work has been reported throughout 2017so far, which provides an indication that the cooling UK housing market has started to act as a drag on the construction sector”.

Source of information Markit/CIPS

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Estate Agent Talk

7 Ways Estate Agents Can Adapt to a Changing Property Market

The UK property landscape is evolving rapidly, and estate agents are under increasing pressure to implement innovative strategies. With shifting buyer expectations, new technologies, and alternative sales models entering the market, adapting your approach is essential. So, if you’re looking to see success with your agency, here are just seven key ways you can remain…
Read More →
Letting Agent Talk

Spring clean drives high maintenance bill for landlord

The latest market insight from property management specialist, Rushbrook & Rathbone, suggests that property maintenance spend is set to surge in April, as the annual ‘spring clean’ by landlords saw the month account for the second highest proportion of total annual maintenance spend in 2025, as well as the largest average spend per work order. Rushbrook…
Read More →
Breaking News

65% of homebuyers blame slow process on conveyancers

The latest research from Lyons Bowe reveals that 65% of recent homebuyers say the conveyancing process was the slowest part of their buying process, with a quarter saying the legal back and forth took more than 16 weeks to complete. Lyons Bowe commissioned a survey of 1,000 UK homeowners who made a purchase in the past…
Read More →
Breaking News

UK Construction Activity Collapses

Glenigan’s April Construction Index uncovers an industry struggling to cushion the blows from ongoing international conflict and a persistently weak economy. Work starting on-site declined by 17% compared to Q4, remaining 18% below 2025 levels. Residential construction starts dropped by 13% during the Index period and fell by 30% against 2025 figures. Non-residential project-starts dipped…
Read More →
Breaking News

Homebuyer demand down in Q1 2026

Buyer demand slips in Q1 2026, with South of England outperformed by North and Midlands The latest Sales Demand Index from eXp UK has revealed that homebuyer demand in England slipped by -1.6% in Q1 2026. The analysis also reveals a clear north-south divide with counties located in the midlands or north of the country recording…
Read More →
Letting Agent Talk

Check your rights now or risk being caught out by new rental laws

Renters have been urged to check their rights now or risk being caught out, as sweeping new laws prepare to transform the rental market from May. The warning comes ahead of the Renters’ Rights Act, with major reforms set to affect millions of tenants, fundamentally changing how tenancies are managed and challenged. Housing law expert…
Read More →