Commercial activity continues to ramp up at a marked pace, driving construction growth into the fourth quarter of 2014, according to the latest figures from industry analysts Glenigan.
The Glenigan Index for November, which covers projects starting on site during the three months to October, has increased by 4% compared to a year earlier. This figure is up slightly from 3% in September and marks the 17th consecutive monthly Index rise.
Allan Wilén, Economics Director at Glenigan, said: “Commercial and civil engineering work are taking over from housing as the lead drivers of new construction starts.
“This broad footing of construction growth bodes well for the upcoming period of political uncertainty ahead of the general election, and as expectations of an interest rate rise appear to be dampening confidence among UK homeowners."
Following last month’s dip, the Glenigan Residential Index is hovering just outside of negative territory, recording no change compared to a year earlier.
Private house building remains on the up, despite the recent stall, with starts rising by 15% so far in 2014. In contrast, social housing continues to struggle, with starts flat for the year to date.
This divergence can also be seen within the planning pipeline; during the three months to September the underlying value of private housing approvals was up by 24%, while social approvals were down 24%.
The monthly Glenigan Index is based on extensive research of every construction project starting in the UK over the previous three-month period, providing an indicator of developing activity and future output in the industry.
