Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

Construction starts down by almost a quarter

Construction starts were worth almost a quarter less than a year ago, but some sectors are faring more poorly than others, according to new statistics.

The latest index figures from construction analyst Glenigan show that the value of project starts was 24 per cent down in the quarter to June 2011 compared to the same period last year.

However, one sector saw a surge in new work this past quarter. Agressive expansion plans from the UK’s major supermarket chains meant that starts in the retail sector were up 13 per cent. Allan Wilen, economics director at Glenigan said: “The supermarkets continue to get good value for money from the construction industry as it competes fiercely for new work.”

Other sectors did not fare so well this past quarter. Industrial and office construction starts fell by 35 per cent and 20 per cent respectively, while residential starts dipped by 29 per cent year on year.

Mr Wilen commented that Glenigan forecasts private housing building to stabilise by the end of the year. “The Government’s Firstbuy programme will help to bridge the mortgage gap for first time buyers. In contrast social housing will decline furhter as a result of continued public sector cuts.”

Hotel construction in London was down 73 per cent compared to a year ago, though last year saw a dramatic rise as projects were pulled forward to ensure they were finished before the Olympics. Glenigan predicts this dip to be temporary, due to expansion plans by the budget hotel chains.

Take a look at CNinsight for a full analysis of the Glenigan index, plus a graph showing the trend over the past year.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.