Glenigan raises its growth forecasts
Glenigan has increased its growth forecast for 2014 to a 7.4% increase in the value of project starts, up from 4% at the beginning of the year. The 2014 ‘Mid-year construction review and forecast’ prepared by Glenigan’s economics team indicates that the upturn in construction activity is gathering momentum.
The 10% increase in the value of projects starting on site during the first half of 2014 was primarily driven by increases in private housing, industrial and commercial building projects.
Work volumes are predicted to continue to rise across these sectors for the rest of the year, with private housing expected to rise by 14% and industrial projects by 28%.The value of underlying office starts is forecast to rise by 9% — following 12% in 2013 and 39% in 2012.
Alan Wilén, economics director with Glenigan, comments, ‘The industry’s forward pipeline points to sustained output growth during the second half of the year and into 2015.
‘The pre-construction phase also remains firm. Having grown by 19% over the last two years, the value of projects securing detailed planning approval during the first six months of 2014 was unchanged on a year ago, supported in particular by strong growth in private-housing projects.
‘We expect rising private-sector investment and improved consumer confidence to underpin further growth in both detailed planning approvals and project starts during the second half of 2014.’
London was the fastest-growing part of the UK during 2013, with the value of underlying project starts rising by 21%. However, more balanced construction growth is expected for the latter half of 2014.
High-profile projects starts set to break ground in London include the £500 million Scalpel and £340 million London Wall Place developments.
Outside of London is the £100 million Centre Square development in Leeds.
Growth in retail and leisure projects is also expected to be widely spread across the UK as consumer spending picks up.
