As economic stability begins to return, the construction sector is gaining momentum.
This is according to Glenigan’s Construction Review of the industry, which reports a 31% year-on-year increase in project starts. 
The latest data paints an overall positive picture. Project starts and major contract awards showed encouraging growth compared to the previous year, highlighting the return of socio-economic stability after a long period of market uncertainty.
However, the uptick in these activities has been subdued and detailed plan approvals have fallen significantly, indicating that persistent cost pressures and declining industry confidence continue to hinder recovery across the sector.
The review period for residential construction remained relatively stable, with project starts down 1% from the previous three months and 6% from the previous year.
The main reason for the decline was the number of private housing starts, which decreased by 3% from the previous three months and by 1% from the previous year.
However, this was offset by a 4% rise in social housing starts in the three months to November, despite a 20% year-on-year decline.
Commenting on the December data, Alan Willen, economics director at Glenigan, said: “There is certainly work to be done and the latest figures offer some optimism, with a modest increase in project starts and contract values.'' “There are signs of recovery,” he said.
“The Autumn Statement and some immediate steps taken by the government to start construction in some industries, particularly residential construction, will help. However, the sharp decline in detailed planning approvals is likely to push the market further into the It highlights that investors will likely leave their money dry until stability returns and they muster the confidence needed to turn on the tap on the development pipeline.
He added: “A continued focus on public infrastructure, health and housing projects will be critical to driving the recovery beyond 2025.” The industry will be closely monitoring how these fiscal policy and investment initiatives translate into activity on the ground. ”
