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Project starts down 10% year on year but housing remains robust

Project starts in the three months to June were down 10 per cent compared to the same period in 2014, according to the latest Glenigan Index.

The Glenigan Index for June, which covers projects starting on site in the last three months, shows that starts have declined by 10 per cent, with notable falls seen in the civil engineering and education sectors.

Civil engineering project starts dipped by 21 per cent in the three months to June compared with the same period a year earlier, while non-residential starts also fell by 21 per cent.

In contrast, housing has remained robust, with project starts rising by 9 per cent compared to the same period in 2014.

The value of schemes started by private housebuilders is now 14 per cent higher than a year earlier - the fastest expansion since July 2014.

There were mixed fortunes across other sectors, with education seeing a 20 per cent fall in project starts in the three months to June compared to a year earlier, while in the health sector, starts were up 20 per cent over the same period.

The majority of regional markets saw a dowturn over the past three months, with the exception of the East Midlands, which was the only region not to see a decline in starts compared to a year earlier.

London and the South-east saw only modest declines, as did the North-west and North-east, but Yorkshire, the West Midlands and Wales all saw sharp falls relative to a year ago.

Commenting on June’s Glenigan Index, Glenigan economics director Allan Wilén said: “Despite the recent slowdown in project starts, our data indicates that activity will bounce back quickly over the next couple of months.

“The value of contracts awarded has continued to grow during 2015 and developers will now be mobilising their project teams.

“We expect this to come to fruition with a surge in starts during the second half of the year.”

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