Data released earlier on Monday showed that the latest UK construction PMI was unchanged at for March as uncertainty and caution dominated the sector. At 54.2 in March, the seasonally adjusted Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) posted above the neutral, but indicated the joint-slowest rate of output growth since June 2013.

Details showed that faster rises in commercial work and civil engineering activity were offset by another slowdown in residential building. The latest increase in housing activity was only marginal and the weakest recorded since January 2013.

Looking ahead, the majority of survey respondents (51%) expect a rise in business activity at their units over the next 12 months, while only 11% forecast a reduction. While this signalled that UK construction companies remain optimistic about their prospects for growth, the overall degree of confidence was the joint-lowest since December 2014.

“March’s survey confirms that the UK construction sector is experiencing its weakest growth phase since the summer of 2013. Heightened uncertainty about the business outlook appears to have weighed on overall construction demand so far in 2016." said Tim Moore, Senior Economist at Markit.