Glenigan has released the May 2024 edition of its Construction Review, which focuses on the three months to the end of April 2024, covering all major (>£100m) and underlying (<£100m) projects, with all underlying figures seasonally adjusted.

The latest data from Glenigan reveals protracted delays to getting shovels in the ground, with major cutbacks to construction projects amid rising borrowing costs and weak demand.

Averaging £7.2bn per month, work starting on site in the three months to the end of April decreased 10% against the preceding three months, remaining 21% lower than a year ago. Major project-starts fell dramatically, dropping 21% on the previous period and 34% compared to 2023. Underlying starts had a less pronounced decline, dipping 15% during the three months to April and only 12% on the previous year.

Commenting on the figures, Glenigan’s economic director Allan Wilen says: “Project-starts are struggling to match last year’s levels, as the industry continues to be plagued by uncomfortably high interest rates. Furthermore, shrinking workloads in some key sector verticals, particularly residential construction, are holding back short-term recovery.”

This overall drop in activity was also reflected in main contract awards, which fell 16% against the previous three-month period, and 29% against 2023 levels. Digging deeper, underlying contract awards experienced a significant slump, standing 18% lower than the preceding three-month period and 35% lower than the same time last year. Similarly, major contract awards also fell, declining 16% against the preceding period and 20% compared to 2023 levels.