Residential construction-starts decreased 10% on the preceding three months and fell back 26% on 2022 figures, according to the October 2023 Construction Index from Glenigan.
Similar to the September Index, social housing project-starts also suffered, declining 13% against the preceding quarter and 37% compared with 2022 levels.
Private housing construction-starts performed poorly against the preceding quarter (-10%) to stand 23% lower than the previous year.
The Glenigan numbers paint a bleak short-term picture for the UK construction industry. Increased pressure on household budgets, coupled with soaring interest rates, continues to negatively affect consumer confidence.
Commenting on the findings, Glenigan’s economic director, Allan Wilen, says, “Many will be disappointed to see performance levels declining further, after an extremely tough six-month period. Given the persistent economic and political uncertainty it’s hardly surprising. With sky-high interest rates denting confidence, the Government is spending thriftily, holding back investment in public sector areas until a degree of certainty returns to the economy.
He adds: “This is not being helped by the prospect of a hotly contested election within the next 12 months, which may see a change in administration. This will potentially usher in a period of purdah, delaying approvals and contract awards, further stifling activity”.
