Information based on the Glenigan index, which observes the value of projects starting in October through to December, shows that construction is up 15% in comparison to this time in 2012.
This has been driven by the continued acceleration in commercial construction activity.
Retail starts have doubled in the last three months compared to the same time in 2012, showing the impact of how increasing consumer confidence in 2013 is helping the industry.
In terms of project starts, one of the fastest growing sectors in 2013 was civil engineering with a double figure growth since August. In the final quarter of 2013 starts on projects were 41% higher than the same quarter a year ago; this has been down to both infrastructure and utility having strong growth in value of projects started. With an increase expected in 2014 of renewable energy projects starting, this sector is expected to continue to remain very buoyant in the coming year.
Construction in office projects has also continued to increase and strengthen, with new projects started, up by 20% from a year ago. Compared to the health, community & amenity sector which has continued its long term decline. During the final quarter of 2013 starts on health projects were down by 9% on a year ago, with community & amenities suffering even worse with a decrease of 18%, this long term decline is believed to be down to scarce government funding.
Allan Wilén who is the Economics Director at Glenigans said that ‘Business sentiment remains high and firm occupier and investment demand for new industrial and logistics, office and prime retail space will drive further rises in new starts during 2014.’
Posted 20th January 2015