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

2015-05-20 11:03

Development of the £2.2 billion Nova, Victoria project, which will see a revolutionary change to the London Victoria area, is underway and has utilised unique and fabricated formwork systems

2015-05-20 10:56

Care homes have been a hot topic of late, with the quality of care and patient safety taking centre stage, says Steve Watts, regional director of building services at Patrick Parsons

2015-05-20 10:44

Stephen McCluskey, managing director at Which? Trusted Traders explains how Alternative Dispute Resolution can improve consumer confidence in your construction business

2015-04-22 14:30

Steven Kratsis looks at how to manage your risk factor across the lifecycle of a project

2015-04-22 14:18

We look at how a newly built primary school benefitted from an off the shelf approach to construction

2015-04-22 13:53

Is offsite construction the perfectly timed solution for the construction industry?

2015-04-22 13:47

Peter Vinden, looks at why HS2 is still failing to change public perceptions

2015-03-25 14:02

Stuart Thomson, public affairs consultant, and Dougal Ainsley, solicitor at Bircham Dyson Bell discuss the changing face of the procurement process

Free E-newsletter Sign-Up

Sign up for our free e-newsletter

Looking for a company or service?