“The slight uptick in Construction PMI suggests the sector is steadying but not bouncing back. Any small improvement is likely due to reduced weather disruption. Overall, demand still looks weak and many projects are being pushed back rather than kicked off.

“The market is still split. Infrastructure is holding up better, while housebuilding remains the weakest sector and is most sensitive to interest rates hikes. Even if house prices are edging up, the outlook is still uncertain, higher energy costs and changes in mortgage rates can quickly hit confidence and affordability.

“Cost and delivery risks are also rising again. The inevitable increase in cost of materials due to the war in the Middle East, the rise of minimum wage and labour pressures are squeezing margins, especially on fixed price contracts. At the same time, extra regulation and longer waits between planning approval and starting on site are slowing activity and making firms more careful about investing.

“Looking ahead, we expect a bumpy few months. On some projects, especially larger commercial ones, the numbers are tight, build costs are much higher and funding may become harder to secure. That means more redesign, value engineering and phased delivery. A sustained lift will depend on stronger new orders and steadier expectations for interest rates and input costs.”