Key Construction Markets Intelligence Report

Glenigan are widely respected as the reliable source of construction industry activity data. This powerful monthly report examines the recent performance, trends and prospects of the UK Construction Industry by region and sector. It has been published to provide companies with essential insight to help make the informed decisions in challenging economic times. The report combines expert analysis from the Glenigan economics team with robust data driven forecasts using Glenigan's unrivalled database of UK construction activity. The report contains: Expert analysis and forecasting Top level analysis of the UK construction industry Sector by sector analysis and forecasts Region by region analysis and forecasts The report will help you: Appraise your current strategy against market statistics Drive results by focussing resources on the most active regions/sectors Seize new opportunities when the industry picks up

Government projects support construction starts

A Combination of Public Sector and Utilities Projects Is Helping Steady The Flow Of Construction Schemes Starting On Site. The July Glenigan Index Recorded A 19% Year-On-Year Decline In The Value Of Project Starts As Increases In Educational, Social Housing And Utilities Projects Partially Offset Declines In Private Sector Work. This Compares With Declines Of Up To A Third Earlier In 2009. Glenigan Anticipates A Further Stabilsation In Project Starts During The Remainder Of This Year, Albeit At A Low Level, Prior To An Improved Flow Of New Projects During 2010.

Near term, the fall in private sector work continues to depress construction project starts across the UK. Only Scotland, Northern Ireland and Yorkshire & the Humber enjoyed a rise in project starts during the three months to July, and these oases were thanks to increases in public sector and civil engineering work. The sharpest falls have been in the West Midlands and the North East and across southern England.Whilst there have been recent signs of improvement in the housing market, developers remain focussed on completing and securing sales on existing projects, rather than on opening new sites. As a result, private housing starts remain weak, although off recent lows. In contrast, the flow of social housing schemes has picked up over the last quarter, indicating that promised Government funding is now feeding through.

This has helped trim the year-on-year decline in the Residential Index for July to 16%.The Non-residential Index for July was 21% down on a year ago, with the decline led by a slump in private sector work. Falling rental and capital values and rising vacancy rates continued to deter developers, with planned industrial and commercial schemes being placed on hold. Industrial project starts were especially weak, being 70% down on a year ago, while the value of underlying office and retail schemes fell by a third. Public sector work, and in particular a rise in education projects, has helped soften the decline in the Non-residential Index. However, there are indications that the recent pick-up in government funded projects may loose momentum over coming months.

Whilst major schemes such as the £6.3 billion M25 widening scheme are now underway, the Civil Engineering Index (which excludes schemes over £100 million) has fallen back in recent months due to a scarcity of smaller infrastructure projects and delays to planned energy schemes. In contrast to the strong growth seen during the first quarter, the Civil Engineering Index in July was 15% down on a year ago, despite an increase in utilities projects.

• Government projects support construction starts
• Outlook
• Economic prospects
• 1 Sectors
  • 1.1 Private housing
  • 1.2 Social housing
  • 1.3 Industrial
  • 1.4 Offices
  • 1.5 Retail
  • 1.6 Hotel & Leisure
  • 1.7 Education
  • 1.8 Health
  • 1.9 Community & Amenity
  • 1.10 Infrastructure
  • 1.11 Utilities
• 2 Regions
  • 2.1 East of England
  • 2.2 East Midlands
  • 2.3 London
  • 2.4 North East
  • 2.5 North West
  • 2.6 Northern Ireland
  • 2.7 Scotland
  • 2.8 South East
  • 2.9 South West
  • 2.10 Wales
  • 2.11 West Midlands
  • 2.12 Yorkshire & the Humber
• Charts
  • Chart 1: Glenigan Index
  • Chart 2: Glenigan Index Forecast
  • Chart 3: Departmental Capital Expenditure
  • Chart 4: Value of projects put on hold during January to August 2009
  • Chart 5: Mortgage approvals and house prices
  • Chart 6: Private housing planning applications and approvals - new build only
  • Chart 7: Trend in Private housing construction starts
  • Chart 8: Social housing planning applications and approvals - new build only
  • Chart 9: Trends in Office Construction Starts
  • Chart 10: Value of underlying projects starts during 2008
  • Chart 11: Trends in Hotel & Leisure Construction Starts
  • Chart 12: Trend for construction starts in London
• Tables
  • Table 1: Glenigan Indices
  • Table 2: Key economic indicators
  • Table 3: Underlying construction starts and planning approvals (Starts - three months to August 2009, Planning approvals - three months to July 2009)
  • Table 4: Forecast change in the value of underlying construction starts
  • Table 5: Forecast construction starts for Private Housing
  • Table 6: Forecast construction starts for Social Housing
  • Table 7: Forecast construction starts for Industrial
  • Table 8: Forecast construction starts for Offices
  • Table 9: Forecast construction starts for RetailTable 10: Forecast construction starts for Hotel & Leisure
  • Table 11: Forecast construction starts for Education
  • Table 12: Forecast construction starts for Health
  • Table 13: Forecast construction starts for Community & Amenity
  • Table 14: Forecast construction starts for Infrastructure
  • Table 15: Forecast construction starts for Utilities
  • Table 16: Underlying construction starts and planning approvals (Starts - three months to August 2009; Planning approvals - three months to July 2009)
  • Table 17: Forecast change in the value of underlying construction starts
  • Table 18: Forecast construction starts for the East of England
  • Table 19: Forecast construction starts for the East Midlands
  • Table 20: Forecast construction starts for London
  • Table 21: Forecast construction starts for the North East
  • Table 22: Forecast construction starts for the North West
  • Table 23: Forecast construction starts for Northern Ireland
  • Table 24: Forecast construction starts for Scotland
  • Table 25: Forecast construction starts for South East
  • Table 26: Forecast construction starts for the South West
  • Table 27: Forecast construction starts for Wales
  • Table 28: Forecast construction starts for the West Midlands
  • Table 29: Forecast construction starts for Yorkshire & the Humber