Business News Round Up (09/04/2026)
UK construction PMI edges up but sector remains deep in contraction
The UK construction sector remained in contraction during March, with the latest S&P Global UK Construction Purchasing Managers’ Index (PMI) rising marginally to 45.6 from 44.5 in February, though still below the neutral 50.0 threshold for the fifteenth consecutive month. Residential building continued to drag on overall performance, with the house building index falling to 38.2 – the weakest of all sub-categories. Civil engineering (44.8) and commercial construction (47.1) fared somewhat better, with the former recording its least marked decline since May 2025, partly attributed to a gradual recovery in major infrastructure work. Joe Sullivan, construction and real estate partner at MHA, said the slight uptick offered little cause for optimism. “The slight uptick 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,” he said.
Businesses brace for tougher trading as cost pressures drive price rises, survey finds
More than half of businesses expect trading conditions to worsen in 2026/27, while rising employment costs and wider uncertainty continue to weigh on confidence, according to Armstrong Watson’s latest Client Business Confidence Survey. The survey, completed by 245 businesses, found that 54% of respondents anticipate trading conditions will worsen in 2026/27 compared to 2025/26, while just 20% expect an improvement. Confidence remains mixed overall, with 40% who are pessimistic about the economic outlook for their business in the new tax year, compared with 34% who feel optimistic. Cost pressures are a recurring theme. Seven in ten businesses cited increases in tax and operating costs as one of the key challenges they currently face. Against that backdrop, 70% expect to increase prices over the next three months — suggesting many are looking to protect margins wherever the market allows.
North West breaks into UK hotel top ten as Liverpool and Manchester surge
Liverpool and Manchester have both entered the top ten of the Colliers UK Hotel Development Index 2026, with Liverpool climbing seven places to ninth and Manchester rising four to tenth – among the biggest upward moves this year. The annual index scores 35 UK cities across nine performance indicators including build costs, land and site prices, occupancy, average daily rate (ADR) and RevPAR growth. Both cities have broken through on the strength of comparatively lower land and project delivery costs than gateway markets such as Edinburgh and London, improving the development economics for investors and operators across the region. Manchester shines as a particularly attractive and consistently sought-after market, having steadily built a reputation for deep occupational demand, strong operator interest and well-established infrastructure serving both leisure and corporate travellers.
Food and Drink sector ‘overlooked’ by investors
Scotland’s food and drink sector, despite being worth £24 billion, is consistently overlooked by the investment community, according to a gathering of key stakeholders. They found that a significant gap between the sector’s commercial success and share of private investment was down to its multitude of small players, and no dedicated fund or close alliance with investor networks. There was also a lack of understanding across the sector of the various options for financing businesses, said trade body Scotland Food & Drink which organised a round table to address the issue. Food & drink is Scotland’s largest manufacturing sector, employing 115,000 people and delivering sustained growth over 15 years. However, it sits at the bottom of ten sectors for investment in Scotland, with deal numbers falling 34% between 2022 and 2024.