CONSTRUCTION activity is making a sustained recovery with the commercial sector providing a boost, new data released today shows.
The Glenigan index, produced by construction analysts Glenigan, was four per cent higher for November than it was a year ago. The figure is up from three per cent in October and marks 17 consecutive months of growth in constructions activity.
The index for November covers projects starting on site during the three months to October.
The construction boom is being led by the commercial sector – office and retail sectors both recorded 25 per cent year-on-year increases in project starts. The commercial sector was boosted by a number of major London schemes, including the £95m One Mitre Square development .
“Commercial and civil engineering work are taking over from housing as the lead drivers of new construction starts,” said Allan Wilen, economist at Glenigan.
“This broad footing of construction growth bodes well for the upcoming period of political uncertainty ahead of the general election, and as expectations of an interest rate rise appear to be dampening confidence among UK homeowners.”