Glenigan has released its August 2022 Construction Index, which focuses on the three months to the end of July 2022, covering all projects with a total value of £100m or less (unless otherwise indicated), with all figures seasonally adjusted. The report provides analysis of year-on-year construction data, giving an insight into the sector’s performance over the last 12 months.
The August Index highlights a downward trend across most construction sectors, with the value of underlying work starting on-site falling 13% during the three months to July, to stand 20% lower than a year ago.
The construction industry recovery continues to be held back by ongoing supply chain issues caused by multiple factors, including the Russia-Ukraine war and persistent global material shortages, which are significantly inflating costs and squeezing margins.
Both residential and non-residential construction-starts were down, dropping 12% and 25%, respectively. This value decrease may be due, in part, to developers bringing forward project-starts to get ahead of new Building Regulations that came into effect in June.
Glenigan’s economic director, Allan Wilen, commented: “From July 2022, residential developers will need to ensure new buildings meet strict energy use standards required by the introduction of Part L, reducing carbon emissions by 30%. As many get to grips with the specifics of this new regulation and futureproof their assets to comply with other aspects of the Future Homes Standard, a quieter July was inevitable and could carry into August.”