The review focuses on the three months to the end of July 2024, covering all major (>£100m) and underlying (<£100m) projects, with all underlying figures seasonally adjusted.
Averaging £10,198m per month, work starting on site in the three months to the end of July increased 8% compared with the same period last year.
Glenigan attributes this uplift to a significant spike in major project starts which rose considerably, increasing 42% compared to 2023.
However, this growth was tempered by a decline in underlying project-starts which were down 11% on the previous year despite inching up around 2% against the preceding three months.
Overall, work starting on site failed to grow on the preceding three-month period, declining 10% during the three months to July.
Allan Wilén, Glenigan’s economic director, said: “Construction activity is showing encouraging signs of recovery, with starts on site up 8% compared to last year and main contract awards reflecting a steady 3% year-on-year growth. This momentum indicates a cautiously optimistic outlook within the industry, particularly as the new government’s planning reforms begin to take shape.”
Main contract awards fell 9% against the previous three-month period, but pulled slightly ahead of last year, rising 3%. Drilling into the data, major contract awards were responsible for this slight growth, advancing a third on the year before. Underlying contract awards, however, declined 5% against the preceding period and 11% compared to 2023 levels.
Planning approvals were down across the board, dropping back 6% against the previous three months and 32% on a year ago. Major planning approvals fell 12% against the preceding period, with the value decreasing by 54% on last year. Underlying planning approvals increased 6% on the preceding three months but finished 5% lower than the same period in 2023.
The sector-specific and regional index, which measures underlying project performance, saw modest growth during the three months to the end of July 2024. Residential construction experienced a particularly healthy period, contributing to a 2% overall growth in underlying starts, said Glenigan.
