CN Intelligence in partnership with Glenigan

19 JULY 2023 | By CONTRIBUTOR

Weak construction-starts performance continued during the three months to June with main contract awards and detailed planning approvals also performing poorly. Averaging £5.434bn per month, work commencing on-site during the quarter to June experienced a weak performance, decreasing 26 per cent against the preceding quarter and remaining 42 per cent lower than a year ago.

11 JULY 2023 | BY ALLAN WILEN

Allan Wilen is Glenigan’s economics director. The construction of logistics and warehousing facilities has been a star performer for the industry in recent years. Demand for logistics space has soared as global supply chains have been disrupted and as the pandemic accelerated changes in consumers’ retail habits. Rising interest rates and stalled economy are currently curbing investors’ confidence and dampening sector activity.

19 JULY 2023 | BY CONTRIBUTOR

Project-starts and main contract awards fell against both the previous quarter and 2022 levels. In contrast, detailed planning approvals grew on a year ago. Totalling £2.578bn, civil engineering work starting on site during the second quarter of 2023 fell 7 per cent against the preceding three months and faced a 61 per cent decline against the previous year.

19 JUL 2023 | BY CONTRIBUTOR

Project-starts, main contract awards and detailed planning approvals all fell against both last year and the previous quarter, with no major projects reaching any of the three stages of the development pipeline. Community & amenity work starting on site totalled £208m during the three months to June, a 76 per cent decrease compared with the preceding three months, and 45 per cent down on the previous year. Unlike the previous quarter but the same as last year, there were no major project-starts (£100m or more).

19 JULY 2023 | BY CONTRIBUTOR

Main contract awards and detailed planning approvals fell against both the previous quarter and last year, while project-starts experienced mild growth on a year ago. Totalling £1.095bn, education work starting on site experienced a 39 per cent decrease on the preceding three months but stood 8 per cent up on the previous year.

19 JULY 2023 | BY CONTRIBUTOR

Main contract awards decreased against the previous three months and on a year ago. More positively, project-starts grew on the previous quarter and detailed planning approvals were higher than a year ago. Adding up to £736m, underlying health work starting on site (less than £100m in value) during the three months to June grew 50 per cent against the preceding three months on a seasonally adjusted (SA) basis but stood 22 per cent down against the previous year.

19 JULY 2023 | BY CONTRIBUTOR

Main contract awards and project starts performed poorly against both the previous quarter and 2022. More positively, there was slight growth in detailed planning approvals against the preceding three months. Adding up to £1.03bn, work starting on-site in the East Midlands during the second quarter of 2023 fell 15 per cent against the preceding quarter to stand 58 per cent down on a year ago.

19 JULY 2023 | BY CONTRIBUTOR

London experienced a poor period for project starts and main contract awards, with their value decreasing against both the previous quarter and 2022 levels. More positively, detailed planning approvals grew against the previous year. Totalling £2.85bn, work starting on site in London during the three months to June fell 45 per cent against the preceding quarter to stand 30 per cent down on a year ago.