Construction starts have hit their lowest level in at least a year, according to new research.
Industry analyst Glenigan reported that the volume of projects starting construction on the site in the three months from September to November was down 12% from the previous three-month period.
It was also 25 per cent lower than September-November 2022 and represented a low point on Glenigan’s 12-month chart of new activity.
Housing starts were the only bright spot in the last quarter, with housing starts higher than the previous period, albeit down 12% year-on-year.
Work on other new buildings fell sharply to 40% below the same period in 2022, and is now well below the 2006 levels that the Glenigan index uses as a benchmark.
Civilian starts have ended 31 percent lower in the past three months than the corresponding period last year.
Glenigan’s director of economics, Allan Wilen, said the latest figures showed a continued contraction in an industry that suffered major economic shocks earlier this year.
“High interest rates and a weak economic outlook continue to deter private non-residential investment, while government-funded health and education starts were down sharply from the previous three months,” it noted.
But he added: “There are tentative signs that residential activity has started to stabilise.
“Private housing starts varied little compared to the previous three months. Reflecting the findings of our latest forecast, this could be seen as the first signs of the recovery expected to begin in the second half of 2024.”
Yorkshire and the Humber was the only region to see an increase in starts in the latest period, but was still 20% below November 2022 levels. London only saw a 3% fall on October 2023 figures, but was more than a quarter down on November 2022.
The North East and Northern Ireland were the hardest hit, falling by 30% and 29% respectively last month.
