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

2015-02-24 12:16

The construction industry’s reluctance to use digital technology is retrogressive and unrealistic… but things are starting to change, says Benjamin Dyer of Powered Now

2015-02-24 12:13

Tracey Jackson from Howells Patent Glazing says the firm is aiming high when it comes to the year ahead

2015-02-11 11:54

Gillian Econopouly, head of policy and research at CITB believes more still needs to be done to address the skills shortage

2015-02-11 11:49

Judy Ashcroft from Re:allies looks disposal issues currently facing the sector

2015-02-11 11:44

Investing in careers can help prevent talent from going elsewhere says Kirstin Donohue of Connect

2015-01-28 13:11

Ian Wakelin, CEO of Biffa, looks at the construction sectors' approach to waste

2015-01-28 12:56

Is HS3 all it's cracked up to be? Lee Wagstaff of Thornton and Lowe finds out

2015-01-28 12:40

Steve Farmer, CEO at Mabey Hire discusses the need for investment and high hopes in the construction and engineering industry

Free E-newsletter Sign-Up

Sign up for our free e-newsletter

Looking for a company or service?