The value of underlying work starting on-site during the three months to February fell 22% against the preceding three-month period to stand 40% lower than a year ago, according to the March 2023 edition of the Construction Index from Glenigan.

The Index focuses on the three months to the end of February 2023, covering all underlying projects, with a total value of £100m or less (unless otherwise indicated), with all figures seasonally adjusted.

Residential construction-starts slipped back 27% on the preceding three months and 43% against the previous year. Non-residential project-starts fell by 19% against the preceding three months to stand 38% down on a year ago. Civil engineering work starting on-site declined 8% against the preceding three months, 17% down against the previous year.

Similar to the January and February Indexes, the March edition paints a grim picture of a sector-wide decline, which continues to falter in Q1 2023 amid price inflation, economic uncertainty, and lukewarm investor appetite. This is evidenced by a whopping 40% drop in starts compared to 2022 figures and a 22% decline against the preceding three months.

Commenting on the results, Glenigan’s economic director, Allan Willen, says: “Many will be disappointed to see performance levels continue to proceed on their downward trajectory, but given the current economic malaise it’s hardly surprising. The year got off on a slow footing, with a further weakening in project-starts during the three months to February reflecting the ongoing ripple effect of international conflict, weak economic policy, disrupted supply chains, and rising costs.