Buyers report construction cost surge | Construction Enquirer News

The increases came as construction output reduced again with residential work falling the fastest. The bellwether S&P Global UK Construction Purchasing Managers’ Index rose to 45.6 in March from 44.5 in February but remained below the neutral 50.0 value for the fifteenth month in a row. March data pointed to a renewed downturn in supplier performance. Average lead times among vendors lengthened for the first time since July 2025 and to the greatest extent for 14 months. Construction companies typically commented on longer international shipping times and tighter supplies of some raw materials like resins. Nearly half of the survey panel (48%) reported an increase in their average cost burdens during March, while only 3% signalled a decline. The resulting seasonally adjusted Input Prices Index pointed to a rapid acceleration in cost inflation to its highest since November 2022. House building activity (index at 38.2) again declined more quickly than civil engineering (44.8) and commercial construction (47.1). All three sub-categories recorded slower rates of contraction than in February. Tim Moore, Economics Director at S&P Global Market Intelligence, said: “UK construction companies indicated a sustained downturn in business activity during March, led by another steep reduction in residential work. “A degree of resilience continued in the commercial and civil engineering segments. There were some reports of a turnaround in infrastructure work, especially in the energy sect...