The value of work starting on site in the three months to June was 4% lower than during the second quarter of 2016, according to the latest Glenigan Index.
However, on a seasonally adjusted basis, starts were 10% higher than during first three months of 2017.
The main points from the current Index include:
- Starts in the three months to June were 4% lower than a year ago.
- Non-residential project starts were 14% down on the same period in 2016, due to falls in retail, health, education and community & amenity projects.
- Residential starts were 14% up on a year ago, due to a strengthening in private housing starts.
- Civil engineering starts were 28% down on a year ago.
Commenting on this month’s figures, Allan Wilén, Glenigan’s Economics Director, said: “The snap general election appears to have disrupted the flow of non-residential projects starting on site during the second quarter, with a number of public sector projects as government announcements were postponed during the pre-election run-up to June 8 and a few private sector clients also appearing to have deferred decisions on projects until after the election.
"We anticipate that these delayed projects will provide a boost to starts over the coming months as work gets underway post-election.
“Non-residential projects were 14% down on a year ago. The decline was led by a continued weakening in retail projects. In addition there were sharp declines in education, health and community & amenity projects that may be due in part to announcements on public sector projects being temporarily delayed by the snap general election. In contrast there has been a further strengthening in office and industrial building projects starting on site.
“Private residential starts strengthened during the second quarter. On a seasonally adjusted basis the value of starts was 21% up on the first three months of the year. The rise is despite quieter conditions in the wider housing market and put starts 14% up on a year earlier.
"A pick up in social housing starts during June helped counter earlier weakness, leaving starts for the second quarter unchanged on a year ago.
“Civil engineering starts during the three months to June were 29% down on a year ago, reflecting a weakening in both infrastructure and utilities work."
There were sharp variations in project starts across the country. Whilst most parts of the UK have seen a decline in project starts, the North West and South West and Yorkshire & the Humber saw a marked strengthening in starts, with increases of 21%, 12% and 24% respectively against a year ago.
In contrast the North East, West Midlands, Wales and Northern Ireland saw the sharpest declines, with falls of 21%, 23%, 16% and 52% respectively.
