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The construction sector is suffering from its worst winter since 2013, according to the latest Glenigan Index

The value of new work starting on site* fell by a marked 20% in the three month period to the end of January, compared to the same period of 2014/15. Office construction was the only sector of the industry to edge higher, with starts declining across residential, non-residential and civil engineering work.

Glenigan’s monthly barometer of project starts had already sounded warning bells during the three months to November; the extreme weather conditions in December brought a sharper pace of decline. The value of starts was down 14% on a year earlier during 2015 Q4.

Waterlogged sites, coupled with the evident lack of confidence among construction clients, are expected to hold back starts during the first quarter of this year. However, as set out in our Construction Review & Forecast for 2016, activity is expected to pick up through 2016. Rises in project starts will be led by the commercial and private housing sectors.