Construction back in decline

The underlying value of construction projects starting on site in the three months to April fell 4% year on year, according to new data from Glenigan.

James Abraham, economist, Glenigan, commented: "This is the largest year on year decline in the Index since the 5% fall in May 2011.

“Residential construction was flat year on year for the three month to April.”The 15% increase in private housing project starts was met by a 17% decline in social housing activity as private sector growth failed to outpace public sector cuts.

"There was a similar pattern of private sector growth versus public sector cuts in non-residential construction. Office and industrial building is responding to a shortage in supply following three years of limited building and supermarket investment remains high. However, the health, education and community & amenity all fell, as public sector cuts continue to bite."

According to the Glenigan Index forecast the underlying value of construction projects starting on site will remain below that seen in quarter one of this year into 2014.

"The recent pattern of activity is expected to continue throughout 2012. Investment in infrastructure and private sector building recovery will be offset as Government cuts restrict health, education and social housing projects. Less money for new builds could see an increase in refurbishment work this year" said Abraham.

He concluded: "More growth is predicted for the commercial sectors, though a sustained rise depends on general economic prospects. The increase in private housing building seen over the first third of the year will slow over the next six months."

Your News

If you've got a story that would be of interest to Builder & Engineer readers, send us an email

Features

2014-12-17 11:31

Sven Armbrecht business development manager at LG Solar looks at what's next for solar power

2014-12-17 11:09

Sandra Brandon project communications campaign manager at the Vehicle & Operator Services Agency explains why van compliance is important

2014-12-17 10:57

UK Export Finance estimates that up to 3,000 smaller businesses and 500 medium-sized and large businesses in the UK could need specific support to finance their export activities over the nex

2014-12-03 10:00

Peter Vinden, managing director of The Vinden Partnership, looks at how the Autumn statement can make a difference to the north of the country

2014-12-03 09:34

Solar roadways, self-healing concrete and the “Internet of Things” to shape our roads in the future

2014-11-19 11:04

Chris Davies, director of Prescott Jones Property and Construction Risks, part of the Prescott Jones Insurance Group explains how to satisfying lenders' insurance requirements

2014-11-19 10:48

Ashley Haines, design manager at Trelleborg talks noise and vibrations in buildings

2014-11-05 12:08

Young Brits should benefit from the thousands of apprenticeships and jobs now up for grabs as housebuilders look to build more homes in the year ahead, Housing Minister Brandon Lewis has said.

Free E-newsletter Sign-Up

Sign up for our free e-newsletter

Looking for a company or service?