The flow of work on-site grew during the three months to May and a
strengthening pipeline points to further growth over the coming months,
according to the latest analysis by Glenigan.
The value of projects starting on-site averaged £5,395 million per month
during the three months to May; a 5% rise against the preceding three months
and 49% higher than the lockdown disrupted period a year ago.
The rise against the preceding three months was due to a 7% increase against
the previous three months in the value of major projects starting on-site. At
an average of £1,232 million a month, major projects were also 6% higher than a
year ago. At £4,163 million per month the average value of underlying projects
(under £100m) was 20% up on the previous three months on a seasonally adjusted
basis and 70% higher than a year ago.
The value of contract awards rose 8% against the preceding three months to
stand 77% up on a year ago and 8% above the same period in 2019. Major contract
awards slipped by 11% during the three months to May but were more than double
(101% up) on a year ago. Underlying contract awards increased by 15%
(seasonally adjusted) on the preceding three months to stand 71% higher than a
year ago.
After recent strong growth the value of work securing detailed planning
consent during the three months to May dropped by 11% against the preceding
three months but was unchanged compared with a year ago. The decline was due to
a drop in the value of major projects securing planning approval, which
declined by 50% against the preceding three months and was 52% lower than a
year ago. In contrast the value of underlying detailed planning approvals grew
robustly, rising by 8% against the preceding three months (seasonally adjusted)
to stand 39% up on a year ago.
The value of work on-site rose during the first quarter of the year,
according to the latest official data from ONS, with output rising by 2.6%
against the preceding three months although it was 1.2% down on a year earlier.
An increase in the value of projects starting on-site is expected to sustain
further output growth over the course of 2021.
Overall repair and maintenance output rose 3.3% during the three months to
March and was 6.8% ahead of a year ago. Private housing RM&I output has
been especially buoyant, rising by 3.1 % during the quarter and being 11.3% up
on a year ago.
New build output rose 2.8% against the previous three months but was 5.3%
lower than a year ago. Commercial output grew by 3% during the quarter but remained
14% down on a year ago. Industrial sector activity fell back after strong
growth last autumn, with output 10% down on the preceding three months and 28%
lower than a year ago.
New public non-residential output rose by 2% but was 3% lower than a year
ago.
Private new housing output grew by 3% but was 1% down on a year ago. Social new
housing output also grew, rising by 10% against the preceding three months but
was 16% lower than a year ago.
Infrastructure has been the strongest performing new work sector, rising by
4% against the preceding three months to stand 8% up on a year ago.
