Construction starts weaken during the third quarter

Starts in the three months to September were 10% down on a year ago and 13% lower than during the previous three months (seasonally adjusted), according to the latest Glenigan index.

Residential starts were 1% up on both the preceding three months and on a year ago, while non-residential project starts were 20% down on a year ago, with most sectors seeing declines.

The value of work starting on site during the third quarter was 13% down on the previous three months on a seasonally adjusted basis, and 10% lower than a year earlier.

Commenting on this month’s figures, Allan Wilén, Glenigan’seconomics director, said:“Private residential starts weakened during the three months to September. Private housing starts dropped 9% during the three months to September against the preceding three months on a seasonally adjusted basis and were 2% down on a year ago. Social housing starts slipped back by 1% against the previous three months, but were 14% up on a year ago.”

Northern Ireland and Yorkshire and the Humber were the best performing parts of the UK during the third quarter, with starts rising by 41% and 13% respectively on a year ago. The east of England, East Midlands and Scotland all saw a 5% rise in starts. The value of underlying projects starts fell in all other parts of the UK: London, north east, north west, south west and West Midlands saw double digit declines of 11%, 34%, 16%, 31%, and 25% respectively.