Project starts in February are 6% higher than a year ago, despite overall the value of new work starting on site falling by 23% in the three month period to the end of last month.
Commenting on this month’s figures, Allan Wilén, Glenigan’s Economics Director, said: “The rise in February starts is encouraging, with the industry beginning to press on with projects delayed by the atrocious weather conditions seen at the turn of the year.”
Furthermore the progressive rise in projects securing detailed planning approval over the last year has ensured that the industry has a strengthening pipeline of potential work, especially from the private sector.”
He added: “Private investor confidence will be key to how quickly these projects move to site over the coming months. The Prime Ministers decision to call an early EU referendum on 23 June is good news for the industry as it minimizes the period of political uncertainty for investors.
Accordingly while the impending vote is likely to dampen project starts in the near term, the second half of 2016 could see a sharp rise in activity as private investors press ahead with projects once the issue of EU memberships has been resolved.”
Project starts strengthened across the east and south of the country during February as ground conditions improved. Midlands and Northern English regions are outperforming. The south east saw the sharpest rise in project starts during the month, being 91% up on a year ago, but there were also strong monthly increases in London, the East of England and Yorkshire & the Humber.