Latest News Wed, Sep 21, 2016 3:33 PM
The value of work starting on site in the three months to August was 7% down on the same period of a year ago, according to the latest Glenigan Index.
Commenting on this month’s figures, Allan Wilén, Glenigan’s Economics Director, said: “The three month period covered by the August Glenigan Index straddles the EU referendum vote. The 7% decline in project starts reflects in part the impact of the related political and economic uncertainty on investor nerves.
“Non-residential project starts were particularly weak, due to fewer office, hotel & leisure and industrial projects commencing on site. This, combined with a fall in civil engineering project contributed to the overall decline in the index against both the preceding three months and a year ago.
“Residential project starts were 3% ahead of a year ago, despite a 15% decline against three months to May. Private residential starts were unchanged on a year ago, while social housing starts were 10% higher.
“In contrast to the recent slowing in project starts, the potential development pipeline remains firm. The value of projects securing detailed planning approval during the first eight months of 2016 is 3% up on a year ago. However the strongest growth in approvals has been in those sectors where project starts have been most affected by referendum uncertainty; private housing, industrial and commercial developments. Investors will be closely watching the unfolding economic environment over the coming months to assess any implications for planned projects. This is likely to disrupt the progress of some projects to work on site and accordingly we expect an overall weakening in project starts during the second half of 2016."
Regionally the value of project starts were generally down on a year ago. However the South East and South West of England and Wales bucked the trend, with underlying starts up against a year ago. Starts were also sharply higher in Northern Ireland.
Key findings include:
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