Uncertainty slows summer activity – Glenigan
The private non-residential construction sector – to which many in the construction industry are looking, amid widespread public-sector cutbacks – has been a disappointment during the past few months, says Glenigan, the construction industry data group.
The latest Glenigan monthly index shows that the political and economic uncertainties caused some groups to defer work on projects to develop office space during the summer. The flow of office projects had started to improve at the start of the year, but then weakened again during June and July, with larger projects (over £10m) remaining scarce. In the 12 months to August activity in the sector was down 41% year-on-year. The picture for retail premises was somewhat brighter, with project starts in the sector up 6% in the three months to July and activity in the year to August flat year-on-year. Industrial construction starts fell 12% year-on-year in the three months to July, and activity was down 31% year-on-year for the 12 months to August Glenigan says growth in industrial development activity is expected to resume, albeit from a low base, as capital is made available to invest in new building work.
“Improved business confidence and lending conditions have been slow to lift industrial and office starts. Nevertheless, a number of stalled schemes are being taken forward by developers,” Glenigan said.
