The construction sector’s expansion slowed in the three months up to the start of August, according to industry analysts Glenigan
While growth in the industry is currently up 10 per cent year-on-year, this is lower than the 15 per cent year-on-year rise recorded for the three months up to the beginning of July.
According to the Glenigan Index, a decline in social housing construction is partly responsible for the slowdown – down 11 per cent. The reduction means that the residential sector overall has only grown by four per cent in the previous 12 months, the lowest increase recorded in the last 15 months.
This figure was buoyed by a robust private housing market, which saw a 16 per cent rise over the last 12 months. This figure has held steady throughout 2014.
Hotel and leisure starts have increased by two per cent, while retail is down one per cent.
Glenigan director Allan Wilén said that the value of all project starts in the sector have been increasing at 12 per cent each month over the past six months.
Wilen commented: ‘This is below the breakneck rises seen in the third and fourth quarters of last year but nonetheless represent a very healthy level of expansion.’
He added that there is ‘plenty more work waiting in the wings’, though did issue a warning: ‘The only sector seeing a drop was social housing, suggesting further declines ahead.’