Major project starts jumped 91 per cent year-on-year (averaging £4.5 billion) in the three months to June compared to the previous year, a new report shows.
The latest Construction Review by Glenigan shows a mixed performance in the industry despite the significant jump in major project starts.
While overall construction starts in the three months to June performed better than the previous year, it did see falling growth against the preceding three months.
Moreover, major starts fell 11 per cent in the three months to June while overall construction starts saw a 13 per cent decrease and underlying work decreased 2 per cent, compared to the preceding three months .
Nevertheless, construction starts remained 13 per cent higher than the year previous.
These starts averaged £9,2 billion per month.
Main contract awards fell 34 per cent compared with the preceding three-month period to stand 32 per cent lower than the same time a year ago.
Planning approvals also suffered with a 21 per cent drop compared to a year ago averaging £9.7 billion per month with a 19 per cent decrease against the previous three months.
Moderate growth during June could be attributed, in part, to pre-election hesitancy.
The latest Glenigan Forecast suggests the UK election might have signalled the end of political instability and a return of investor confidence.
Following Labour’s landslide victory, Chancellor Rachel Reeves restated Labour’s pledge to build 1.5 million homes and to introduce planning reform.
Glenigan economist Drilon Baca said: “The latest data shows an overall weakening in June.
“However, an increase in residential starts against the preceding three months and a rise in Civils against the previous year provides some good news.”
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