Wettest December worsens construction slowdown

The wettest December on record has worsened a slowdown in new construction, according to Glenigan data.

Glenigan’s monthly barometer of project starts had already sounded warning bells during the three months to November; the extreme weather conditions in December brought a sharper pace of decline. The value of starts was down 14% on a year earlier during 2015 Q4.

Waterlogged sites, coupled with the evident lack of confidence among construction clients, are expected to hold back starts during the first quarter of this year. However, as set out in our Construction Review & Forecast for 2016, activity is expected to pick up through 2016. Rises in project starts will be led by the commercial and private housing sectors.