Tomorrow
CURRENT ISSUE
MEDIA PACK
AWARDS

RESIDENTIAL SECTOR DRIVES RECOVERY IN CONSTRUCTION PROJECT STARTS

The Glenigan March Index

Construction project starts are making a return to pre-lockdown levels, driven primarily by growth in the residential sector, new figures have confirmed.

According to the March Index from construction market analyst Glenigan, the value of underlying construction projects (under £100 million) commencing on-site during the three months to February was 3% higher than the previous year and 4% higher than the preceding three months on a seasonally adjusted basis. 

Residential work starting on-site was responsible for the growth, climbing 30% against the previous year and 17% compared to the preceding three-month period.

Non-residential project starts declined 18% compared to a year ago but climbed 1% against the previous three months. 

Underlying infrastructure work starting on-site struggled during the period, falling 19% against the previous year and 25% compared to the preceding three months. 

Rhys Gadsby, Economic Analyst at Glenigan, commented on the latest figures: “It is positive to see project starts return to pre-lockdown levels, despite the current COVID-19 restrictions. 

“The fact that construction starts during the three months to February 2021 were higher than a year ago will also provide the industry with some degree of confidence. The recovery to date has been in-line with our 2021 – 2022 forecasts and the construction industry is poised for further growth over the coming months as the UK’s vaccination programme helps to unlock the economy.”

A few regions experienced relatively strong performances for project starts during the three months to February. The North East witnessed the greatest growth against the previous year, of 79%, and experienced an increase of 18% compared to the preceding three months on a seasonally adjusted basis. The East of England also performed well and experienced increases of 10% against the previous year and the greatest rise against the preceding three months of 44%. 

Work commencing on-site in London climbed 17% against the previous year and by a quarter compared to the preceding three months. The North West was another region that saw project starts increase, with rises during the period of 38% against the previous year and 19% against the preceding three months. 

In contrast, Scotland and Wales experienced steep declines of 17% and 37% against the previous year. Compared to the preceding three months, work commencing on-site in Scotland declined by a fifth while project-starts in Wales fell 36%. The West Midlands experienced falls of 23% against the previous year and 5% compared to the preceding three months on a seasonally adjusted basis. 

www.glenigan.com

Twitter feed

Visit our other websites