There has been a pick-up in momentum in the construction sector as economic certainty starts to return.
This is according to Glenigan’s Construction Review of the industry which reports a 31% increase in project-starts year on year
The latest data paints a generally positive picture. Project-starts and main contract awards showed promising year-on-year growth, highlighting returning socioeconomic stability after an extended period of market uncertainty.
However, tempering these activity boosts, detailed planning approvals suffered a significant decline, indicating that persistent cost pressures and dented industry confidence continue to hinder sector-wide revival.
The review period was relatively stable for residential construction, with project-starts falling 1% against the preceding three months to stand 6% lower than a year ago.
Private housing construction-starts were largely responsible for the decline, falling by 3% against the preceding three months and by 1% compared with last year.
However, this was balanced out by social housing-starts which increased 4% during the three months to November, despite coming in 20% down on the year before.
Commenting on the December data, Glenigan economic director Allan Wilen said: “There’s definitely work to be done and the latest figures show glimmers of recovery, with modest growth in project-starts and contract awards offering a degree of optimism.
“The Autumn Statement and some of the immediate actions taken by the Government to kickstart building in some verticals, particularly housebuilding will have helped. However, the sharp decline in detailed planning approvals highlights investors will be keeping their powder dry until more stability returns to the market, inspiring the confidence needed to turn on the development pipeline tap.
He added: “A sustained focus on public infrastructure, health, and housing projects will be critical to driving recovery in 2025 and beyond. The industry will be watching closely to see how these fiscal policies and investment commitments translate into on-the-ground activity.”