The rate of decline in the construction continues to soften, according to the Glenigan Construction Index.
The June index reveals that overall sector decline is gradually levelling out and that, whilst undoubtedly lower than 2023 figures, equilibrium is returning in line with a slowly stabilising economy.
Similar to last month’s index, hotel and leisure developments performed best r, experiencing another activity boost, whilst education starts also spiked. In the regions, Yorkshire & Humber and Northern Ireland stood out as the clear front-runners, up during the Index period and on the previous year.
However, residential construction starts were generally disappointing, decreasing 11% on the preceding three months and down 21% on 2023 figures.
Private housing performance fell 23% compared to the previous year, and 15% against the previous three months to May.
On the other hand, social housing, having consistently posted poor results, experienced a small reversal in fortunes, jumping 1% compared to the preceding three months. However, this little increase wasn’t enough to stop it from finishing 16% lower than 2023 levels.
Glenigan’s economist Drilon Baca commented, “Return to a period of relative stability will be welcomed across the sector. However, with a General Election exactly a month away, we need to approach these figures with an element of caution.”
He added: “Whatever the results it will have a considerable effect on industry behaviour, particularly in the private sector, either prompting a spurt of activity or a resumption of the pausing and delays commonplace over the past 24 months. In the public sphere, much will depend on the policies announced in respective manifestos and what the victorious party, or parties in a hung parliament, choose to prioritise.”
