Glenigan, one of the construction industry’s leading
insight experts, releases the December 2024 edition of its Construction Index.
The Index focuses on the three
months to the end of November 2024, covering all underlying projects with a
total value of £100m or less (unless otherwise indicated, with all figures
seasonally adjusted).
It’s a report that provides a
detailed and comprehensive analysis of year-on-year construction data, giving
built environment professionals a unique insight into sector performance over
the past 12 months.
The December Index shows
construction activity avoiding a slide back into decline, with project-starts
holding steady in the three months to the end of November. This gradual rebound
reflects the findings of Glenigan’s autumn Forecast, which registered a modest
performance dip in 2024 before a return to double-digit growth next year.
Commenting on the findings, Glenigan’s
Economic Director, Allan Wilen says, “The much-anticipated boost from a switch
in Government in July has yet to fully materialise, leaving many in the
industry still waiting for a turnaround. While a weak period for residential
construction starts weighed on overall performance, strong growth in the
non-residential sector, fuelled by improved confidence, helped to stabilise
starts. Notably, the Education and Hotel & Leisure sectors delivered
standout performances, serving as key drivers of overall construction project
starts.
“Despite current, sluggish conditions, our
data forecasts a return to growth from 2025, offering the industry brighter
horizons and renewed optimism as the new year approaches.”
Taking a closer look at the sector
verticals and UK regions…
Sector Analysis – Residential
The overall value of residential
project-starts weakened during the Index period, falling 1% against the
preceding quarter. The value also stood 6% lower than the previous year.
Private housing stumbled on its strong
performance in recent iterations of the Index, with work starting on-site
declining 3% compared to the preceding three months, and 1% on 2023 levels.
Social housing starts bucked the trend,
increasing 4% on the preceding three-month period. However, it performed poorly
compared to the previous year, slipping back 20%.
Sector Analysis –
Non-Residential
Overall, non-residential performance
rallied during the Index period, with starts up against both the previous
quarter and last year.
Hotel & Leisure experienced a strong
period, with starts increasing 37% against the preceding three months to finish
a staggering 71% up on the same time a year ago.
Education project-starts also grew, rising
31% against the preceding three months and increasing 29% against the previous
year.
Offices had a good period, with the value
of underlying project-starts increasing 24% against the preceding three months,
standing 2% up on a year ago.
On the other hand, industrial
project-start performance was dismal, suffering a 22% fall during the three
months to November to stand 4% lower than a year ago. Community & amenity
also fared poorly, with the value of project-starts falling back 14% against
the preceding three months and 15% against the previous year.
Civils growth was poor, with starts
decreasing 17% against the preceding three months and remaining flat against
the year before. This was boosted slightly by infrastructure activity, with
starts increasing by 1% against the preceding three months and by 36% on a year
ago.
Utilities starts didn’t fare as well,
declining 41% against the preceding three months to stand 34% down against the
previous year.
Regional Analysis
Regional performance was mixed, with the
North East the stand-out performer during the three months to November.
Starts in the North East increased 32%
against the preceding three months. Despite this, starts failed to match 2023
levels, remaining a fifth behind.
London also offered a faint bright spot,
with project-starts performing relatively well compared to the majority of the
UK, increasing 11% against the preceding three months and 2% above the previous
year.
The South East experienced a similar
trend, advancing 3% against the preceding three months to stand 14% up on the
year before.
Some areas of the UK fared less well,
including Wales where the value of project-starts fell 30% against the
preceding three months to stand a whopping 34% down on a year ago. This was
also the case in Yorkshire & the Humber which crashed compared to the
preceding three months and the previous year.
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construction intelligence services click here.
