Construction projects starts upturn

Construction starts in the three months to April rose 7% against the preceding three months, and were 4% higher than a year ago, according to the latest report from Glenigan.

According to the latest Glenigan Index: residential starts were 4% lower than a year ago and unchanged on the preceding three months; non-residential project starts were 3% higher than a year ago, lifted by a rise in commercial work; and civil engineering starts rose 18% against the preceding three months and were 50% higher than a year ago.

The value of work starting on site during the three months to April was 4% higher than a year earlier, and starts were also 7% higher against the previous three months on a seasonally adjusted basis.

Allan Wilén, Glenigan’s economics director, said: “Private residential starts steadied during the three months to April. Project starts had been weakening since last autumn against a backdrop of fewer property transactions and weaker house price inflation in the wider housing market. However, private housing starts rose 3% during the three months to April against the preceding three months on a seasonally adjusted basis, although starts were 7% down on a year ago. Social housing starts fell 6% against the three months to January, but were 4% up on a year ago.

“Overall non-residential projects rose 3% against the preceding three months on a seasonally adjusted basis and were 11% higher than a year ago. Private sector starts picked up from their recent weak performance with office, retail and hotel and leisure work rising during the three months to April rising by 13%, 39% and 32% respectively against a year ago. In contrast, government-funded sectors remain weak, with education starts 20% down on a year ago, and health and community and amenity sectors dropping by 6% and 41% respectively.”

Regionally, the sharpest falls were in the east of England and Scotland with declines of 18% and 22% respectively.

Starts in the north east, north west, West Midlands and south west also declined.

In contrast, the value of starts in London, Wales and Northern Ireland were 85%, 50% and 97% higher than a year ago, while the East Midlands, south east, and Yorkshire and the Humber all saw double digit growth.