Planning approvals and construction project starts slumped in the three months to the end of June, according to the latest data from Glenigan.
The company’s data shows detailed planning approvals fell 29% on the preceding period, project starts were down 26% and main contract awards fell 32% on the preceding period.
Almost all sector verticals fell in the three-month period, with residential starts increasing 10% (seasonally adjusted) and hotel and leisure also seeing modest growth of 2%.
Allan Wilen, economic director at Glenigan, said: “The construction industry continues to be buffeted by strong headwinds with little sign these are going to calm down in the near future. As our latest forecast shows, the next six months will likely be turbulent ones. Upcoming interest rate hikes will further hinder projects moving to site, and we’re already seeing work falling back in the civil engineering sector with marked declines in both infrastructure and utilities.
“Whilst there are small signs of recovery in the long term, with positive private housing starts an example of stabilising conditions in some verticals, consumer and investor confidence still remains low, generally stifling activity in the here and now.”
