A construction output report has revealed that the value of underlying work commencing on-site has fallen 15% in the three months to January 2022 against the previous three months (August-October 2021).
Construction intelligent experts Glenigan released the February 2022 edition of its Construction Index. The report focuses on January 2022, covering all projects with a total value of £100 million or less (unless otherwise indicated), with all figures seasonally adjusted.
The report provides a detailed and comprehensive analysis of year-on-year construction data, giving built environment professionals a unique insight into sector performance over the last 12 months.
According to the report, the downward curve registered throughout autumn/winter 2021 persisted into 2022, with the value of on-site work plummeting by 15% in the three months to January. This is down 31% compared to the previous year.
This brings project starts to a significant low, revealing an ‘abnormally weak’ January, with start value being at its lowest since the first national lockdown in spring 2020.
Persistent labour and supply chain issues are still having a negative effect on output, holding back recovery and proving a primary reason for such poor performance, Glenigan says.
This has been further exacerbated by rising material prices and deteriorating economic prospects, urging some clients and developers to review project costings or viability and delaying starts on site.
However, despite disappointing levels of output, this month’s Index has recorded a strong development pipeline. This offers a positive outlook for the rest of the year, should external events and challenges resolve.
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