Glenigan reports rise in project starts
Project starts in February were 6% higher in value than a year ago, according to the latest Glenigan Index. The report also notes a strengthening private-sector development pipeline after a strong rise in private-sector investment.
The longer-term picture is less positive, with the value of new work starting on site fall by 23% in the 3-month period to the end of February compared to the same period a year ago. However, the report observes that this is due to weak starts during a waterlogged December and January.
Alen Wilén, Glenigan’s economics director, comments, ‘The rise in February starts is encouraging, with the industry beginning to press on with projects delayed by the atrocious weather conditions seen at the turn of the year.
‘Furthermore, the progressive rise in projects securing detailed planning approval over the year has ensured that the industry has a strengthening pipeline of potential work, especially from the private sector. Private-investor confidence will be key to how quickly these projects move to site over the coming months.’
The EU referendum on 23 June is seen as likely to dampen project starts in the near term, but with the second half of 2016 potentially seeing a sharp rise in activity as private investors press ahead with projects once the issue of EU membership has been resolved.
