Quarterly construction starts increase, says Glenigan

Construction starts in the three months to May increased 9% compared to the three months to April, according to Glenigan.

The construction market data firm’s latest index shows an increase in activity in May, although starts remain 19% lower than for the same period last year.

The underlying project value of starts increased by 1.1% quarter-on-quarter from £5.04bn to £5.1.bn.

A spokesperson for Glenigan said the data “paints a more optimistic picture” for construction overall compared to the “gloomy outlook” in recent months.

He added: “After almost a year of steady decline, the value of underlying project-starts increased by almost a tenth during the three months to May.

“Furthermore, the past 12 months has seen a strong development pipeline of contract awards and planning approvals built-up, indicating green shoots of recovery are starting to emerge.

“However, this modest uptick should be approached with cautious optimism. External influences, particularly the fallout from the Russia-Ukraine War and Brexit continue to send shockwaves through UK business and industry, with supply chains tightly squeezed throughout the first half of 2022.

The underlying project value of residential starts rose 13% in May

Glenigan said the value of housing starts in the three months to May was £2.58bn, up from £2.26bn in the overlapping period in the three months to April.

However, the value of housing starts is 26% down on the £3.4bn for the same quarter last year and shows development activity in 2022 so far at a significantly lower level.

Private housing starts increased 45% in the three months to May compared to the three months to April but are still down 23% year-on year. Social housing starts fell 23% against the last quarter and are 32% down on the same period in 2021.