Construction project-starts plummet amid lockdown
- Overall construction-starts were 61% down on a year ago and 53% down against the preceding three months on a seasonally adjusted basis during the three months to May.
- Residential starts declined 64% against a year ago and 51% against the preceding three months.
- Non-residential starts fell similarly, by 63% on the previous year and by 60% against the preceding three months.
- Civil engineering project starts declined by 42% on a year ago and by 28% compared to the preceding three months.
Rhys Gadsby, Glenigan’s Economic Analyst, commented on this month’s figures: “The value of new projects fell sharply in the midst of lockdown. The latest Glenigan Index has recorded a 61% fall in the value of starts during the three months to May against a year ago. With the UK under lockdown for the majority of the period, the steep decline was largely as a result of this. In May alone, the value of project starts was 68% down on twelve months ago.”
All sectors see project starts plummet
“Project starts in the residential sector saw the steepest decline during the three months to May against the previous year, with social housing showing the sharpest decline.
Social housing project starts fell 70% against a year ago, and by 44% compared with the preceding three months on a seasonally adjusted basis.
Private housing starts also suffered during the three months to May, with starts down 53% against the preceding three months (seasonally adjusted) and by 62% compared to the previous year.”
“Non-residential project starts also fell steeply during the three months to May, falling by 63% against a year ago and by 60% compared to the preceding three months (seasonally adjusted).
Unsurprisingly, all non-residential sectors saw a drop in the value of starts.
Education starts fell the sharpest, with a fall of 78% against the previous year and a fall of 79% against the preceding three months on a seasonally adjusted basis.
Offices also saw a steep decline, with starts down by 64% on the previous year, and by 57% on the preceding three months on a seasonally adjusted basis.
Health fared the best within the non-residential sector during the three months to May, despite starts being down by 32% on a year ago, and by 33% compared to the preceding three months on a seasonally adjusted basis.”
“Civil engineering starts were down by 42% compared to the previous year and down by 28% against the preceding three months (seasonally adjusted).
The fall was predominantly driven by a sharp drop in infrastructure starts, which were 52% lower than the previous year and 31% lower than the preceding three months on a seasonally adjusted basis.
Utilities starts were also lower against the previous year and preceding three months (seasonally adjusted), being 15% and 21% lower respectively.”
All regions suffer
“As expected, every region across the UK suffered heavily during the three months to May in terms of starts. The sharpest falls came from Northern Ireland, the North East and London, with falls of 81%, 75% and 73% compared to the previous year respectively.
Starts also fell steeply in the East of England, falling by 64% against a year ago. Faring the best during the three months to May was Yorkshire & the Humber, despite the value of starts falling 40% on the previous year.”
