November to January Project Starts
This months Glenigan Construction Review highlights that the value of construction projects starting on site averaged £3,667 million per month during the three months to January; a 31% drop against the preceding three months and 20% lower than a year ago.
The decline was due to both a fall in the value of major projects starting on site and an underlying weakening in market activity. At an average of £730 million a month, major projects were 49% lower than during the previous three months and were 15% down on a year earlier.
At £2,937 million the value of underlying projects (under £100m) was 19% down on the previous three months on a seasonally adjusted basis and 21% lower than a year ago.
November to January Contract Awards
The value of contract awards slipped 2% against the preceding three months and was 8% lower than a year ago.
Major contract awards during the three months to January were 9% down on the preceding three months and were 24% lower than a year ago.
Underlying contract awards, however, stabilised, rising by 3% (seasonally adjusted) on the preceding three months and matching the level seen a year ago.
The development pipeline strengthened during the three months to January, boosted by a rise in major project approvals.
The value of detailed planning approvals was 21% up on the previous three months and 7% higher than a year ago.
The value of major projects securing planning approval jumped by 55% both against the preceding three months and a year ago.
In contrast the value of underlying detailed planning approvals slipped back 3% against the preceding three months (seasonally adjusted) and was 14% lower than a year ago.
November to January Construction Activity
The recovery in on-site construction activity continued during the three months to November. The latest official data from ONS shows that construction output rose 12% during the three months to November against the preceding three months, trimming the year-on-year decline to 3%.
The recovery has been led by a rise in repair & maintenance work. Overall R&M work during the three months to November grew by 13% on the previous three months and was 7% higher than a year ago. New-build output is also recovering, growing by 12% against the previous three months, but still 8% down on a year ago.
Industrial, commercial and social new housing output remained significantly down on a year ago with falls of 18%, 15% and 28% respectively.
Private new housing saw the strongest rebound in output, rising by 21% during the three months to November and cutting the year-on-year decline to 5%.
The CIPS Construction Index recorded a marginal contraction in construction activity during January with the construction index slipping to 49.2, below the 50 no-change threshold. The latest survey also signalled a slowdown in new order growth to its weakest since June. The decline in activity was led by falls in commercial work and civil engineering projects. In contrast CIPS recorded strong growth in residential work.
Glenigan Customers can view the latest 35 page Glenigan Construction Review on their Insight pages.
Not a Glenigan customer but would like to learn how the sectors and regions you're working in are performing? Please download the free report here.
T: 01202 786714