Project starts fall as construction costs rise sharply
The central finding of the latest Glenigan Review is that project-starts returned to decline as sharp rises in construction costs and a weak economic outlook continue to suppress industry activity.
Detailed planning approvals and main contract awards both weakened against the preceding three months, and were far lower compared to the same period in 2021.
Rhys Gadsby, Senior Economist at Glenigan, explained, this Review echoes the findings in previous iterations, highlighting that the ripple effect of international conflict is still sending shockwaves across the construction sector in the UK and Northern Ireland. Ongoing material inflation, high energy tariffs, and a generally weak economic outlook imply we can expect slow progress, at least until the end of 2022. However, small spots of hope across some verticals and regions indicate that the green shoots of recovery are there, waiting for the right time to flourish.
