Construction work falls to lowest level in a yearJanuary saw the lowest level of construction work in almost a year, as ongoing economic uncertainty and heavy rain blighted the industry, according to official statistics.
The value of work across all construction sectors for the month was £14.8bn, a 1.7 per cent fall from December 2022, the Office for National Statistics reported on Friday (10 March). The last time the monthly figure was lower than this was February 2022, when it was £14.7bn.
Work volumes also fell 1.7 per cent in January compared with the previous month. The decline was the steepest seen month-on-month since last June.
Project starts plummet by 40%, says GleniganThe past three months saw a 40 per cent drop in value of new construction work compared with the same period 12 months ago, according to the latest market analysis.
The March edition of Glenigan’s construction index – which measures all underlying projects with a total value of £100m or less – paints a grim picture of continually declining performance amid price inflation, economic uncertainty, and lukewarm investor appetite.
Glenigan found that the value of underlying work starting onsite during the three months to February fell 22 per cent against the preceding three-month period to stand 40 per cent lower than a year ago.
HS2 phase 2a delayed amid ‘significant inflationary pressure’Multiple sections of HS2 are going to be delayed as the government grapples with the spiralling costs.
Delays have been announced for phase 2a, which is between Birmingham and Crewe, as well as the construction of the HS2 Euston terminus.
“Significant inflationary pressure and increased project costs” on phase 2a of the project mean construction work will be pushed back by two years, according to a ministerial statement by transport secretary Mark Harper. Also, he has only pledged to open new high-speed rail services to Crewe and the North West “as soon as possible accounting for the delay in construction”.
Sources:
Construction work falls to lowest level in a year | Construction News
Project starts plummet by 40%, says Glenigan | Construction News
HS2 phase 2a delayed amid ‘significant inflationary pressure’ | Construction News
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