Menu
20/09/2011
Construction Industry Returns To Growth
New data has shown that the construction industry has seen a 6% year on year increase in the underlying value of projects starting on site.
Growth in utilities, industrial, office, private and social housing project starts all contributed to the first growth seen by the industry in a year.
"A poor August 2010 signalled the end of the 2010's construction recovery. The construction industry has seen a decline in year on year project starts since that time due to public sector cuts and weak private sector investment. While the return to growth is a positive sign, it is modest growth from a low base," commented James Abraham, Economist, Glenigan.
The most significant increase was in the utilities sector which grew by 24% with several renewable energy projects starting on site including a £28m scheme contracted to Solarbright to install photovoltaic panels on circa 2000 council owned housing properties and 5 operational properties in Colchester.
"As reported by the CBI in their August Industrial Trends survey, UK manufacturers are enjoying healthy order books and improving expectations for the future. In line with this increase in sentiment, Glenigan recorded a 15% increase in the underlying value of planning approvals over the six months to July, compared to the same period of 2010. In addition, the ONS reported an increase in investment by private sector manufacturing firms in new building work over the first quarter of the year. This has fed through to a growth in project starts - 36% over the three months to August compared to a year ago. Though the increase is amplified by the comparison to a poor August 2010, we expect industrial building to remain a growing part of the construction industry over the next few months," said Abraham.
The decline in private housing which has dominated 2011 has bottomed out with modest growth of 1% for the three months to August. Refurbishment projects, including a £50m project in Kent, continue to drive growth in social housing projects with 11% growth for the three months to August.
Regionally the South East and South West saw the most significant growth, with the East Midlands, West Midlands, Yorkshire and Wales all seeing annual growth of over 10%. In stark contrast the underlying value of project starts in Scotland fell by nearly a third.
(CD/GK)
Growth in utilities, industrial, office, private and social housing project starts all contributed to the first growth seen by the industry in a year.
"A poor August 2010 signalled the end of the 2010's construction recovery. The construction industry has seen a decline in year on year project starts since that time due to public sector cuts and weak private sector investment. While the return to growth is a positive sign, it is modest growth from a low base," commented James Abraham, Economist, Glenigan.
The most significant increase was in the utilities sector which grew by 24% with several renewable energy projects starting on site including a £28m scheme contracted to Solarbright to install photovoltaic panels on circa 2000 council owned housing properties and 5 operational properties in Colchester.
"As reported by the CBI in their August Industrial Trends survey, UK manufacturers are enjoying healthy order books and improving expectations for the future. In line with this increase in sentiment, Glenigan recorded a 15% increase in the underlying value of planning approvals over the six months to July, compared to the same period of 2010. In addition, the ONS reported an increase in investment by private sector manufacturing firms in new building work over the first quarter of the year. This has fed through to a growth in project starts - 36% over the three months to August compared to a year ago. Though the increase is amplified by the comparison to a poor August 2010, we expect industrial building to remain a growing part of the construction industry over the next few months," said Abraham.
The decline in private housing which has dominated 2011 has bottomed out with modest growth of 1% for the three months to August. Refurbishment projects, including a £50m project in Kent, continue to drive growth in social housing projects with 11% growth for the three months to August.
Regionally the South East and South West saw the most significant growth, with the East Midlands, West Midlands, Yorkshire and Wales all seeing annual growth of over 10%. In stark contrast the underlying value of project starts in Scotland fell by nearly a third.
(CD/GK)
Related UK National News Stories
Click here for the latest headlines.
19 March 2013
More Cuts Expected In New Budget
Ahead of the budget announcement it has been revealed that the government plan further spending cuts, with the savings going to large-scale infrastructure projects designed to boost economic growth. A further 2% will be cut from the budget of most Whitehall departments over the next two years, expected to amount to around £2.5bn.
More Cuts Expected In New Budget
Ahead of the budget announcement it has been revealed that the government plan further spending cuts, with the savings going to large-scale infrastructure projects designed to boost economic growth. A further 2% will be cut from the budget of most Whitehall departments over the next two years, expected to amount to around £2.5bn.
29 January 2015
Sky To Launch New Mobile Phone Service
A new mobile phone service is to be launched by pay-TV company Sky in partnership Telefonica, O2's Spanish parent company. Sky, adding mobile to its internet, landline and TV, will use Telefonica UK's wireless network to offer the new service.
Sky To Launch New Mobile Phone Service
A new mobile phone service is to be launched by pay-TV company Sky in partnership Telefonica, O2's Spanish parent company. Sky, adding mobile to its internet, landline and TV, will use Telefonica UK's wireless network to offer the new service.
06 December 2011
£1bn Regional Growth Boost Announced
The UK's £1 billion boost to the Regional Growth Fund announced in the Chancellor’s Autumn Statement last week is expected to enable the fund to support around half a million jobs in total. Deputy Prime Minister Nick Clegg will visit the North West today where he will set out further details on the boost to fund, which will now be £2.
£1bn Regional Growth Boost Announced
The UK's £1 billion boost to the Regional Growth Fund announced in the Chancellor’s Autumn Statement last week is expected to enable the fund to support around half a million jobs in total. Deputy Prime Minister Nick Clegg will visit the North West today where he will set out further details on the boost to fund, which will now be £2.
31 October 2011
Clegg Announces £950M For Jobs
The Deputy Prime Minister has announced a Government investment of £950 million to create and safeguard more than 200,000 jobs across England. The money is the second tranche from the Government’s £1.
Clegg Announces £950M For Jobs
The Deputy Prime Minister has announced a Government investment of £950 million to create and safeguard more than 200,000 jobs across England. The money is the second tranche from the Government’s £1.
24 May 2011
Business Encouraged To Bid For Share Of Funding
Sir Ian Wrigglesworth has visited a road show in Dudley, Staffordshire to promote the second round of the Regional Growth Fund and encourage bidders to compete for a share of £950m.
Business Encouraged To Bid For Share Of Funding
Sir Ian Wrigglesworth has visited a road show in Dudley, Staffordshire to promote the second round of the Regional Growth Fund and encourage bidders to compete for a share of £950m.
-
Northern Ireland WeatherToday:After a dry start this morning rain will spread from the northwest across all parts. This afternoon will be dull with some patchy rain and drizzle. Becoming much milder through the afternoon. Maximum temperature 11 °C.Tonight:A cloudy evening and night with a little light rain or drizzle, perhaps some clear periods developing along the east coast. A very mild night everywhere. Minimum temperature 10 °C.
