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.