Construction industry insight experts Glenigan has released the November 2024 edition of its Construction Index, focussing on the three months to the end of October 2024, covering all underlying projects with a total value of £100m or less.
It says cvil engineering starts experienced a mixed period, dropping eight per cent against the preceding three months but remaining one per cent above 2023 levels.
Infrastructure starts drove growth during the period, increasing nine per cent compared to the previous year despite standing 9% down on the preceding three months. However, utilities starts declined six per cent against the preceding three months to stand ten per cent down on the year before.
Across the whole of the construction sector, the index shows construction activity beginning to stabilise with project-start levels holding steady in the three months to the end of October. Both residential and non-residential sectors managed modest gains, inching up on the preceding period.
Commenting on the findings, Glenigan’s Economic Director, Allan Wilen, says, “Promisingly, the recent deterioration in project starts has eased off over the past few months. This will come as a huge relief across the entire construction supply chain. Modest growth in both the residential and non-residential sectors, whilst not spectacular, is encouraging in an otherwise challenging environment and verifies our prediction of gradual recovery next year, and in 2026.
“Of course, last week’s Budget will provide a further potential boost. The Chancellor’s changes to the fiscal rules will release funds for investing in schools, health, infrastructure, industrial and social housing, providing extra work for the industry. Further, it will allow projects like the HS2 Old Oak Common to Euston extension and the TransPennine upgrade, which have been hanging in the balance over the last four months, to get off the ground in the next fiscal year. With more critical investment set to buoy the industry, it will be interesting to see how these policy and spending commitments play out in the coming months, and how they affect our December, January and February indexes.”
(Picture – Yay Images)
