Civil engineering project starts were 17% higher than a year ago according to the latest Glenigan Index data for November 2009. The increase was driven by a sharp rise in infrastructure work, in particular rail and national roads projects.

New utilities projects remained firm, although slightly down on the strong corresponding period a year ago. The Glenigan Civil Engineering Index was 103.1 for November 2009 compared to 88.1 in November 2008. The Glenigan Indices exclude projects over £100m, so major schemes, such as the £6.3bn M25 widening scheme will further contribute to the positive picture for civil engineering during 2010.

The headline November Glenigan Index for construction projects starting on site was 3% lower than a year ago, with the Index standing at 85.6 compared to 88.7 for November 2008. September and October 2009 were 4% lower than a year ago. This compares to year-on-year declines of 20% in May 2009 and 27% in November 2008. Nevertheless, despite having stabilised, the flow of new construction projects starting on site is significantly lower than it was 3 years ago.

The Glenigan Index of Residential projects starts for November 2009 was 2% higher than a year ago. Residential project starts rebounded from the 42% year on year decline seen in April 2009 to a 24% year on year increase in September 2009. The November 2009 figure is the result of a temporary easing in private project starts combined with slower growth in social housing starts. The Residential Index was 80.7 for November 2009 compared to 79.1 for November 2008.

Allan Wilen, economics director, Glenigan said that “Although developers continue to prioritise the completion and sale of properties at existing sites, the increased flow of new private housing projects during the autumn reflects housebuilders’ growing confidence that market conditions will improve during 2010.”