A construction activity index report has shown a “disappointing” decline in projects starting in the last three months.
The report by Glenigan, which provides UK construction project data, market analysis and company intelligence. Figures showed that the decline hit housing, industrial, commercial and civil engineering projects the hardest.
According to the report:
• Starts in the three months to June were 21% down on a year ago and were 8% lower than during the preceding three months.
• Civil engineering was 20% lower than a year ago due to declines in both infrastructure and utilities work.
• Residential starts were 25% lower than a year ago with a weakening in both private and social housing projects. Non-residential project starts were 16% lower than during the second quarter of 2017.
• Northern Ireland was only part of the UK to see a small rise in the value of project starts. London and Yorkshire and the Humber recorded the steepest falls, with the value of starts 56% and 32% lower than a year ago respectively.
• Private residential starts during the three months to June were 18% down on the same period a year ago.
• Social housing starts were 26% down on the first quarter of the year on a seasonally adjusted basis and 42% lower than a year ago.
• Non-residential projects were 16% lower than a year ago and 14% down against the three months to March on a seasonally adjusted basis.
• Year on year double digit declines in industrial, retail, office and community and amenity projects overshadowed 22% rise in health project starts.
• Civil engineering starts during the three months to June were 20% down on a year ago, with a 41% drop in the value of underlying infrastructure starts partially offset by a 25% rise in utilities work.”
Allan Wilén, Glenigan’s Economics Director, called the progressive decline “disappointing”.