Glenigan index says jobs being held back by uncertainty over government鈥檚 budget later this month
Construction starts have slipped since the post-election boost, according to Glenigan鈥檚 most recent construction index.
The data specialist said industry performance has plateaued since the election in July, with declines in residential and non-residential sectors creating an overall drop in starts.
It said underlying work starting on site has fallen 3% in the three months to the end of September against the previous quarter and standing 7% lower than a year ago.
Residential construction starts have dipped by 2% from the preceding quarter, falling back 9% on 2023 figures.
Non-residential construction is also down 9% from last year, with starts suffering a decrease of 8% since the last index.
While private housing construction starts rose by 2% against the preceding quarter, social housing project starts took a hit, falling by 12% and 24% compared to last year.
Glenigan鈥檚 economic director, Allan Wilen, said: 鈥淐onfidence remains low in the private sector, not helped by the prospect of the upcoming Autumn Budget Statement, which many see sweeping changes to tax and planning policy.
鈥淚nvestors are, understandably, cautious. Likewise, a lack of clarity on public sector spending has also pushed back project start dates and left some up in the air altogether.
鈥淓veryone will be on tenterhooks to see what will come out of the Spending Review, but this is still months away and leaving many high and dry.
鈥淚t makes an uncertain situation even more precarious, and the sector is in a delicate position, highlighted by the collapse of ISG and its subsidiaries last month.鈥�
Despite the underwhelming figures, there were some glimmers of hope with starts on site in civils work growing 8% in the three months to September while hotel and leisure work was up 83% on the same time last year.
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