
A growing commercial property market delivered a boost to construction activity in the final part of 2013, the latest figures reveal.
A growing commercial property market delivered a boost to construction activity in the final part of 2013, the latest figures reveal.
The Glenigan Index, which covers the value of projects starting on site from October to December 2013, was 15% up on the same period in the previous year.
It shows commercial construction activity has continued to accelerate amid strong growth in the retail, office and industrial sectors.
There was a 21% increase in the value of non-residential project starts, with gains in commercially funded and education projects.
It is the first time since the first half of 2010 that there has been a second consecutive quarter of growth in non-residential construction starts.
And the impact of returning consumer confidence was illustrated as retail starts in the three months to December were double the level seen in the final quarter of 2012.
Education project starts in the final quarter of 2013 were 35% up on the same period in 2012 - starts for the year as a whole increased by 19% - although starts are still 14% below their value in 2011.
Civil engineering was an especially fast growing sector in terms of project starts in 2013, posting double-digit growth since August.
Thanks to equally strong growth in the value of infrastructure and utilities projects over the period, starts were 41% higher during the final quarter of 2013 than a year earlier.
The buoyant environment is tipped to continue in 2014, with more growth expected in renewable energy project starts after the December announcement of renewable energy 'strike' prices.
And it appears the improving picture for the commercial property market is still very much in place, as office construction activity was 20% up on a year ago and industrial construction enjoyed a 15% rise.
"Our expectations for construction activity are positive, in line with the brightening economic outlook," said Allan Wilén, economics director at Glenigan.
But he added that business investment will be vital to a sustained recovery that has so far been based on consumer spending.
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