2
JUNE 2015 PRO INSTALLER
PRO NEWS
ISSUE 27
June 2015
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Construction
Industry Suffers
Election Hangover
UK construction continues to feel the
impact of the general election as activity
drops for the second consecutive month,
according to figures released on 1st
June by industry analysts Glenigan.
The Glenigan Index for June,
which covers the value of projects starting on site during
the previous three months,
has declined by 10% as activity stalled in the run up to
polling day.
Civil engineering and non-residential work fell by 21%, with further
declines in the retail, office and
industrial sectors. Following last
month’s strong performance, hotel
and leisure starts have now also
fallen into the red, down 20% on a
year ago.
By contrast, the Glenigan Residential Index is up 9%, with value of
schemes started by private houseAll rights reserved. No part
builders 14% higher than a year
of this publication may be
reproduced or transmitted in
earlier - the fastest expansion since
any form or by any means,
electronically or mechanically
July 2014.
without the consent of Clearview
Social housing starts were also up
Group Ltd and any of its
subsidiaries.
on a year earlier, with the sector
seeing a modest upturn in recent
Whilst every effort is made to
ensure accuracy, this publication
months after weakening during
does not accept liability for
errors, printing or otherwise
2014.
appearing in this publication. The
Commenting on the figures,
views expressed by contributors
are not necessarily those of the
Allan Wilén, Economics Director at
editor or publisher.
Glenigan, said: “Despite the recent
slowdown in project starts, our data
Payatrader [Acceptacard] - ETH.pdfactivity will bounce
indicates that 1 01/04/2015 12:07:39
Email:
rob@cvgroup.
co.uk
back quickly over the next couple
of months.
“The value of contracts awarded
has continued to grow during 2015
and developers will now be mobilising their project teams.
“We expect this to come to fruition
with a surge in starts during the
second half of the year.”
‘the health sector saw
starts increase by 20%’
Elsewhere in this month’s Index,
the public sector experienced differing fortunes, with declining non-residential work driven by a 20% fall
in education starts as universities
continue to postpone schemes.
In contrast, the health sector
saw starts increase by 20%, even
excluding major projects including
Papworth Hospital in Cambridge
and the New Dumfries and Galloway Royal, both funded through
variations of Private Finance Initiative models.
The regional picture reveals
continued contraction, with only
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the East Midlands escaping the
slowdown. London and the South
East saw only modest declines, as
did the North West and North East
of England. However other parts o f
Northern England, the West Midlands and Wales all saw sharp falls
relative to a year ago.
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The monthly Glenigan Index is
based on extensive research of
every construction project starting
in the UK over the previous threemonth period, providing an indicator of developing activity and future
output in the industry.
Source: Glenigan
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