The latest Glenigan index of construction has revealed that the value of underlying work starting on-site increased 7% against the previous three months, although it remains 7% lower than a year ago.
Activity growth in key verticals – such as civils and residential – helped to drive this recent construction start-performance. The value of residential project-starts rose 22% against the previous quarter, although the value remained 8% lower than in 2023.
Compared to the previous three months, there was a 30% increase in work starting on-site in the private housing sector, despite falling 4% short of 2023 levels. Social housing project-starts fell by 4% against the previous quarter and 21% against the previous year.
There was a 45% increase in industrial project-starts in the three months leading up to August, whilst remaining 27% lower than last year.
Community and amenity starts fell by 31% against the previous three months but increased 1% on the previous year while retail starts rose by 2% against the previous three months and 4% on the previous year.
Hotel and leisure starts fell by 22% against the previous three months but ended 17% high than the previous year.
Education starts fell by 29% against the previous three months and fell 22% on the previous year.
Regionally, the East Midlands rose 65% in starts against the previous three months and stood 16% up against the previous year.
The South West and Northern Ireland saw an increase in starts by 20% and 32% against the previous three months, ending up 6% and 36% up against the previous year.
Meanwhile, the value of starts in Yorkshire and the Humber and Wales dropped by 19% and 6% during the three months to August and were 12% and 46% down on the previous year.
Glenigan economist, Drilon Baca said: “It’s heartening to see project-starts rising during the Index period. As market inflation and persistently high interest rates start to ease, we’re noticing an increasing confidence among developers which is starting to buoy the residential market.”
“The industry can also take hope from signs of individual vertical recovery. For instance, civil engineering project-starts grew by almost a quarter against the preceding three months. However, the new Government’s keenly-anticipated Autumn Budget and upcoming spending reviews are expected to have a significant effect, particularly on infrastructure starts.”
