Construction growth continues to rise despite minor economic disruption caused by the recent bad weather, according to industry analysts Glenigan.

The Glenigan Index, which covers the value of projects starting on site from December 2013 to February, is 10% higher than a year ago - driven by continued rises in new infrastructure and private non-residential starts.

The recent flooding is likely to have a negative impact on the UK economy, especially due to disruptions across transport networks and some business closures in affected areas. New housing appears to be among the affected sectors with conditions appearing to delay new site openings.

However, later in 2014, it will cause a small rise in repair and maintenance work, and has already acted as a spur for work to repair and strengthen rail infrastructure in the South East and South West of England.


The monthly Glenigan Index is based on extensive research of every construction project starting in the UK over the previous three-month period and provides an indicator of developing activity in the industry.

Commenting on the figures, Allan Wilén, Economics Director at Glenigan, said: "Private sector investment is main driver behind the latest 10% rise in construction project starts. Glenigan has recorded growth in the commercial & industrial property sectors that will feed through as higher industry workload during 2014 and 2015. Civil engineering also remains a hot spot, due to increases in infrastructure and utilities work."

He added: "In contrast, the strong growth in housing project starts seen during 2013 lost momentum over the three months to February. The extreme weather conditions experienced over the winter months appears to have hampered the opening of some new sites and we anticipate a rebound in project starts during the spring as conditions improve.

"Longer term recent events will generate additional repair work to flooded homes and business premises as well increased investment in flood defenses."

(CD/JP)