Standfirst Growth in the three months to June at its highest peak since the start of the year.
This encouraging set of figures are according to new data from industry analyst, Glenigan. The Glenigan Index, covers the value of projects starting on site from March to May, and found that activity is 20% higher than a year ago; the biggest increase since January.
The figures follow reports from the Confederation of British Industry (CBI) that the economy is growing at its fastest pace since its records began in 2003.
The Glenigan non-residential index is up by 24% compared with the same period in 2013, the strongest rate of growth seen since the three months to January of this year. This rise has been largely fuelled by the private sector, with the industrial, office and hotel and leisure sectors all seeing healthy improvements in the value of starts.
Glenigan data suggests that house builders are continuing to open up new sites in response to strengthening demand. The value of private housing starts was up by 20%, matching the strong performance recorded in last month’s Index and marking the fourteenth consecutive month of rising private housing starts.
“As we head towards the mid-point of 2014, the prospects are improving for construction volumes across the whole of the UK,” said Allan Wilén, Economics Director, Glenigan. “A renewed strengthening of non-residential work is the most significant driver of the high 20% increase recorded in our latest Index, though the underlying value of project starts also increased across the housing and infrastructure sectors.”
Mr Wilén observed that the flow of non-residential development showed a pause in the first quarter of 2014, with a ‘modest’ 1% rise in the value of starts. This came as the rate of growth slowed in commercial work, remaining just sufficient to offset weakness in public sector construction. “However the latest figures show a renewed expansion in the underlying value of starts,” he added
The public sector has also shown signs of recovery. Education and health starts both rose, with community and amenity work the only area seeing a fall. While growth in education fits with the longer term upward trend, the recent upturn in medical construction is not expected to be sustained.
Not unexpectedly, social housing work has also fallen back over the last three months, with the underlying value of starts down 13% compared with a year earlier.
GROWTH IN REGIONS
Barring Yorkshire and the Humber, where starts were flat on a year ago, every other part of the UK saw an uplift in activity. Strong growth in the East of England was sustained into the three months to May, and North East England also saw marked improvements relative to a year earlier.
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