Construction Starts Improved 3% in March

UK construction activity registered a modest 3% increase in March, reaching a seasonally adjusted annual rate of $1.1 trillion, primarily propelled by robust nonresidential and nonbuilding sectors. Nonresidential building starts rose 6%, with manufacturing surging an impressive 122% and commercial starts improving 21%. Concurrently, nonbuilding activity expanded 9%, buoyed by a significant 159% uplift in utility/gas projects, exemplified by substantial infrastructure investments such as the $3.5 billion Sunrise Offshore Wind Farm. This monthly growth, however, was tempered by a 5% decline in residential starts, notably a 10% fall in single-family housing, although multi-family increased by 4%. Despite this monthly uptick, the broader market perspective remains cautious. Year-to-date figures show total construction starts down 1% from last year, with nonresidential activity contracting 9%. Eric Gaus, chief economist at Dodge Construction Network, underscored growing uncertainty linked to trade policy and economic direction, predicting escalating headwinds. Developers are reportedly confronting rising delays in the planning pipeline, alongside higher tariffs, dwindling federal funding, and persistent labour shortages. These factors collectively indicate a challenging environment for senior decision-makers navigating a mixed and increasingly complex construction landscape. Read More