Commercial construction continues to show strong upward trend in activity
The value of starts for commercial construction projects in the latest report from Glenigan Index rose for the third consecutive month compared with the same periods a year earlier. The rises for November, October and September were, respectively, 4, 11 and 12%. Allan Wilén, economics director, commented, ‘These latest figures highlight the importance of rising public-sector confidence to deliver increased activity levels in 2015. Private housing and the commercial and industrial sectors are forecast to be the main engines for growth over the next 12 months.’
Despite the results for the private sector, the overall value of projects starting on site during the three months to November 2014 was 5.5% down on the previous year — the first decline recorded during the year.
Private-housing starts were 8% lower than a year earlier, suffering from a particularly strong performance during the same period in 2013.
Across Government-funded sectors, the value of underlying project starts was lower. Education and project starts dropped back, in contrast to the positive trend seen for much of 2014. The retrenchment in the social-housing sector continued, with starts down 13% on a year earlier.
The monthly Glenigan index is based on extensive research of every construction project starting in the UK over the previous 3-month period, providing an indicator of developing activity and future output in the industry.