The improvement in construction has continued with the latest figures from the Glenigan Index for May. These cover the value of projects starting on site during the previous three months and show an improvement of 10% compared with a year ago – ‘powered by robust growth’ in the private housing, hotel and leisure and utilities sectors.
Private residential activity increased by 21% from the same period in 2013 confirming its position as the key aspect of growth in the Glenigan Index.
Forecasts of private non-residential construction is reported to remain positive, but the rate of expansion has ‘moderated’ compared with the strong growth seen at the end of 2013. The hotel and leisure sector has seen the strongest improvement relative to a year ago, recording a 31% rise in project starts. The trend of growth in office construction has also continued, with the value of starts up by 14%, while industrial activity is 8% higher than a year ago.
Commenting on this month’s figures, Allan Wilén, Economics Director, Glenigan, stated: “Private house builders are continuing to open new sites in response to the improving housing market conditions, and we anticipate further expansion following the extension of the government’s Help to Buy scheme out to 2020.”
With early signs of real wage growth it was predicted that this could encourage retail and leisure operators to press ahead with new developments.
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