{"id":115328,"date":"2022-09-09T12:43:57","date_gmt":"2022-09-09T11:43:57","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=115328"},"modified":"2022-09-09T12:43:57","modified_gmt":"2022-09-09T11:43:57","slug":"glenigan-september-2022-construction-index-shows-a-fall-in-project-starts","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/glenigan-september-2022-construction-index-shows-a-fall-in-project-starts\/115328\/","title":{"rendered":"Glenigan September 2022 Construction Index shows a fall in project-starts"},"content":{"rendered":"

Glenigan September 2022 Construction Index highlights a downward trend across most sectors, showing decreased project starts in housebuilding and non-residential projects<\/h2>\n

The Glenigan September 2022 Construction Index<\/a> focuses on the three months to the end of August 2022, covering all underlying projects with a total value of \u00a3100m or less (unless otherwise indicated), with all figures seasonally adjusted.<\/p>\n

As interest rates rise<\/a> and turbulent economic times are ahead<\/a>, the index found that the number of project starts across the board are declining.<\/p>\n

UK regional performance was extremely poor, reflecting the sector\u2019s overall decline<\/h3>\n

Wales experienced a relatively good period compared to other regions, with project-starts seeing a modest decline of 6% against the preceding three months and 8% compared with the previous year.<\/p>\n

Northern Ireland was the highest performing region, and the only region to experience growth against the previous year, with a value increase of 87%. All other UK regions registered a decline compared with the year before.<\/p>\n

London posted the weakest period for project-starts, with the value declining 55% compared with the preceding three months to stand 62% lower than a year ago.<\/p>\n

The East Midlands and Scotland both endured steep falls during the three months to August to stand 37% and 35% lower than the same time last year.<\/p>\n

Amid economic uncertainty and external factors, industry recovery remains sluggish<\/h3>\n

Industry recovery continues to be held back by a variety of external factors including ongoing supply chain issues and rising energy costs as materials inflation continues to accelerate due to the Russia-Ukraine War<\/a>.<\/p>\n

Delayed project-starts continue to squeeze the sector and a recent drop-off in contract awards and planning approvals derail the strong developmental pipeline of early 2022.<\/p>\n

Residential project-starts plummeted 28% against the previous year<\/h3>\n

Residential project-starts weakened significantly during the three months to August, with the value falling 38% against the preceding three months to stand 28% lower than a year ago.<\/p>\n

Similar to the August Index, social housing project<\/a>-start performance was especially poor, declining 38% against the preceding three months and standing 40% down on the same time last year.<\/p>\n

Private housing-starts also faltered, declining 38% against the previous three months and dropping 24% compared with a year ago.<\/p>\n

Non-residential project-starts are down 34% compared with a year ago<\/h3>\n

Overall, non-residential project-starts experienced across-the-board decline, falling 31% against the preceding three-month period and 34% compared with the year before.<\/p>\n

Civil engineering-starts posted the largest fall of any non-residential sector vertical, dropping 27% against the preceding three months and 25% compared to a year ago.<\/p>\n

Infrastructure and utilities<\/a> project-starts also tumbled, falling a quarter and a third respectively during the three months to August, and both by a quarter against the previous year.<\/p>\n

Despite a strong performance in the first half of 2022, industrial project-starts declined 25% against the preceding three months as well as 27% compared to a year ago.<\/p>\n

Commercial offices also continued on their recent downward spiral following a spurt of post-Pandemic activity, experiencing the steepest fall of any sector. Project-starts declined by more than half (-51%) against the preceding three months to stand 48% down on the previous year.<\/p>\n

Health and education construction-starts weakened too, with starts on site falling by a third and 18% against the three months to August, respectively. Both verticals experienced a value decline against the previous year, with health project-starts falling back by a fifth and education project-starts dropping down 36%.<\/p>\n

Hotel and leisure remained largely unchanged, with starts dipping a modest 2% compared with the preceding three-month period.<\/p>\n

However, the decline was more noticeable when measured against the same time in 2021 (-38%). Vice-versa, community and amenity project-starts<\/a> fell down 51% against the preceding three months, but only declined 5% compared with the year before.<\/p>\n

Seeing the impact of a gloomy short-term outlook in the index<\/h3>\n

Commenting on the findings in the August Index, Glenigan\u2019s economics director Allan Wilen says, \u201cThe sharp drop in project-starts is a disappointing yet unsurprising turn of events<\/a>. Recovery continues to be hampered by materials, energy and fuel inflation caused by the Russia-Ukraine war, and now inflation spikes, higher taxes and more stringent building regulations are catching up with construction firms and constraining activity.<\/p>\n

\u201cThe uncertain economic outlook has prompted construction firms to reappraise and revise projects, resulting in a shrinking development pipeline. It\u2019s now having a knock on effect on project-starts. This lull in activity is likely to continue in the near future, but I am confident that there is light at the end of the tunnel.\u201d<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

Glenigan September 2022 Construction Index highlights a downward trend across most sectors, showing decreased project starts in housebuilding and non-residential projects<\/p>\n","protected":false},"author":25,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[676,908,636,572,571,579,639,592],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-115328","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-planning-construction-news","7":"tag-construction","8":"tag-economy","9":"tag-engineering","10":"tag-housebuilding","11":"tag-housing-crisis","12":"tag-infrastructure","13":"tag-procurement","14":"tag-skills"},"acf":[],"yoast_head":"\nGlenigan 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