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

2015-07-29 12:00

The Passive House concept promises low-carbon living that doesn’t cost the Earth, and the way it is gaining ground around the world demonstrates that such claims are far from being so much hot air

2015-07-29 11:45

We look at how timber can be made more sustainable

2015-07-15 13:12

Danish delegation visit Lyng estate to gain insight into urban regeneration

2015-07-15 13:08

Could the altitude clause in BS5534 leave some contractors high and dry?

2015-07-15 12:46

Smaller assembly tools, such as nutrunners, pose just as great a health and safety risk as hammer tools when it comes to industrial noise and vibration, says Bill Harrison, Technical Manager

2015-07-01 12:56

Can the government meet its current housing pledge? We find out

2015-07-01 12:40

Anthony Albertini, partner at Clyde & Co discuses how firms can resolve construction disputes across Europe

2015-07-01 12:22

Andy Matthews, production director of the Fibercill division at National Hickman discusses the dangerous relationship between man and machine and why safety standards matter

Free E-newsletter Sign-Up

Sign up for our free e-newsletter

Looking for a company or service?