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Construction decline in 2024, research finds

  • April 18, 2024
  • 2 min read
Construction decline in 2024, research finds

Construction is down in 2024 so far as project starts, new contracts, and planning approvals are all declining, according to research from intelligence firm Glenigan. The company blamed this poor performance on economic uncertainty in the April edition of its Construction Review.

With an average of £7,215 million per month, work commencing on-site fell 3% compared with the three previous months, finishing 28% lower than in the same period last year. Major project starts fell 26% against the preceding three months, declining by 41% compared with the previous year. It’s a similar story for underlying work, which dropped 22% in the first quarter, ending up 21% lower than in the previous year.

Northern Ireland saw  the strongest performance of any region in the country as project-starts have increased 44% against the previous quarter. This puts it at 28% higher over this time last year. Growth in Northern Ireland accelerated thanks to the £44 million development of the Hamilton Dock Hotel in Belfast.

The East of England also has a positive outlook. It is the only other region that saw a growth over the period, up 13% on the previous months and 25% over the same time last year. This is thanks in part to a £74 million 246-unit residential development in Maldon in Essex.

On the other hand, London has seen a 23% decline over the preceding three months, remaining 18% down over the previous year. The West Midlands experienced an especially poor performance, with the value of project-starts dropping 56% over the previous months and 45% compared with the previous year, the sharpest decline of any region.

The East Midlands (-49%), Wales (-33%), and Scotland (-25%) all saw similar declines over the previous year as every other region in the UK saw a weakening in project-starts, both compared with the last quarter and the year before.

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