Construction sector specialist Glenigan paints a bleak picture for construction industry activity in its latest report on the three months to April this year.
Work commencing on-site in that period fell by 13% against the preceding three months and 36% down on a year ago, Underlying work with a value less than £100 million fell by 23% against the preceding three months and was 41% down on a year ago.
Residential project starts fell by 18% over the previous three-month period to stand 44% lower than a year ago. Private housing fell by 23% against the preceding three months and by more than half (51%) over the same period in 2022.
Looking at the regional figures, Glenigan said that most areas of the UK saw a weakening in project starts in the three months to April.
The North-East experienced the sharpest decline, with project starts down by 50% against the preceding three months and 27% on a year ago, while the South-East also performed particularly poorly, down 42% against the prior three months and 50% on a year ago.
One glimmer of hope in the report was that detailed planning applications increased by 65% over the preceding three months and 27% up on a year ago. Major contract project awards were up by 236% and up 107% on a year ago.
Commenting on its latest report, Glenigan economics director Allan Wilen said: “There’s little doubt starts on-site have crashed and as highlighted by CPA’s
Construction Industry forecast downgrading, it looks as if this protracted period of depressed activity across the entire sector will continue well into the year. A weak economic outlook and myriad external events are to blame for the current situation, and it will likely be Q4 of 2023, or even Q1 2024, before we see a significant softening in interest rates. This will, it’s hoped, inspire the confidence needed to commit the collective shovel firmly into the ground on a nationwide scale.”