Latest News Tue, Mar 22, 2016 5:19 PM
The total value of project starts in the UK construction industry saw a 1.6% year-on-year rise for the three months to June, according to the latest figures from industry experts Glenigan.
The gains in this month's Glenigan Index, a key indicator of activity in the construction industry, were largely driven by rising activity in the private housing and civil engineering sectors.
Last month's Index showed a fall of 2% in new building project starts in the three months to May but there was an 11.7% year-on-year rise in on-site starts in the private housing sector, while the three months to June saw a 12.3% jump in private housing starts compared to the same period in 2012.
Infrastructure starts in June were also particularly strong. A number of large road projects commenced, pushing starts in the sector 40.6% above the level seen in the three months to June of last year.
Utilities starts also remained strong during the period, showing a 29.4% year-on-year increase, but the Index was negatively impacted by a fall in starts in industrial, health and education projects.
"We have seen gains from some sectors in June but we are still recording significant weakness in industrial, health and education starts," Glenigan economist Andrew Whiffin said.
"Industrial starts have declined in every month of this year and in our latest data the pace of decline picked up with starts down 50.8%."
Weakness in health and education construction also pushed the overall value of starts down this month. Health starts declined by 12.7% and education starts by 14% compared to the three months to June last year.
"Health and education starts continue to suffer from reduced investment levels and this is being reflected in the declining value of project starts we are seeing," Mr Whiffin commented.
"We do expect education starts to pick up as more projects from the Priority Schools Building Programme come through the pipeline later in the year and throughout 2014."
Underlying social housing starts also fell in the three months to June, down 3% on the same period last year. Little improvement is expected in the sector over the next 12 months as Budget cuts restrict the amount of new-build projects breaking ground.
Yorkshire and the Humber (40.9%), Northern Ireland (36.9%) and London (17.2%) showed the most progress in project starts for the quarter compared with the same time last year.
The West Midlands saw a year-on-year drop of 69.1% in construction starts for the quarter, while Scotland (-37%), the East Midlands (-33.7%) and the North East (-25.5%) also experienced falls in activity.
The monthly Glenigan Index is based on extensive research of every construction project started in the UK over the previous three-month period and provides an indicator of developing activity in the industry.
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