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 sector.
“March data suggested a challenging near-term outlook for construction activity as total new orders decreased at one of the sharpest rates seen over the past six years. Survey respondents commented on fragile consumer confidence and delayed investment decisions in response to the outbreak of war in the Middle East.
“Construction firms also signalled a recalibration of their output growth forecasts for the year ahead. The drop in confidence during March wiped out the steady improvements in business optimism reported since the Autumn Budget. Escalating inflationary pressures, gloomy domestic economic prospects and higher borrowing costs were widely cited concerns in March.
“International shipping delays meant that supply chain performance deteriorated for the first time since last summer. Moreover, fuel surcharges and rising transport costs contributed to a surge in input cost inflation to its highest for more than three years. The month-on- month acceleration in cost inflation since February was the largest recorded in nearly three decades of data collection.”
