There was a sharp drop in contract awards and project starts in the three months to August, according to Glenigan’s latest construction review.
Major contract awards averaged £7.69bn per month, down 37% on the previous three-month period and down 27% on the same time last year.
Work started on site in the three months to August saw a “weak performance”, averaging £7.65 billion a month, down 14% on the previous three months and down 22% a year ago
Residential and private home starts rose in the three months to August, but weakened from a year earlier. Social housing starts on the site performed poorly, down 19% on the previous three months and the previous year.
Industrial project starts also experienced a poor period, with the value of starts falling 17% in the three months to August and 45% lower than a year ago. Hotel and leisure project starts decreased by 38 percent compared to the previous three months and the previous year. Offices, education and community and services and utilities followed a similar trend.
Health starts experienced a mixed period, rising 8% from the previous three months, but falling 7% below 2022 levels. Retail followed a similar trend, with an increase in the value of project starts 33% compared to the previous three months, but a drop of 24% compared to the previous year.
Civil engineering works that have started on site also increased by 3 percent compared to the previous three months, to be 29 percent less than a year ago. Infrastructure starts drove some growth during the period, up 15% from the previous three months, but down 33% from a year earlier.
According to the review, most areas of the UK saw a weakening of project starts over the period, although Northern Ireland saw a 23% increase on the previous three months and was the only region to experience an increase in the value of starts against. the previous year, at 80 percent.
Glenigan’s chief economist, Allan Wilen, said: “The further weakening of construction starts in the three months to August is disappointing. However, there are some signs that conditions are stabilising, with the value of residential housing works up 6 percent and the value of civil engineering up 3 percent.”
On a more positive note, detailed planning approvals saw a “strong performance” compared to 2022 levels.
