South West

Overview

Project-starts and detailed planning approvals both fell against the previous year. More positively, main contract awards performed well against 2022 levels.

Work commencing on-site in the South West added up to £1.016bn during the quarter to March, a 6 per cent increase compared with the preceding quarter to stand 31 per cent lower than a year ago. There was a total absence of any major projects (over £100m in value) starting on-site during the period, remaining unchanged against both the preceding quarter and the previous year. Underlying project-starts (less than £100m) experienced a poor performance, decreasing 24 per cent against the preceding quarter on a seasonally adjusted (SA) basis to stand 31 per cent down on a year ago.

Main contract awards faced a 51 per cent decline against the preceding quarter to stand 20 per cent up against the previous year to total £1.934bn. Major project contract awards at £188m experienced a 90 per cent decrease against the preceding quarter to stand up on the previous year where no there were major projects. Underlying contract awards had a mixed performance, they fell 11 per cent (SA) against the preceding quarter but were 8 per cent higher than last year’s levels.

At £1.488bn, detailed planning approvals slipped back 45 per cent against the preceding quarter and 24 per cent on last year’s levels. There were no major approvals during the period, a decrease on the preceding quarter and previous year. Underlying detailed planning approvals fell 14 per cent (SA) against the preceding quarter to stand 12  per cent lower than a year ago.

Sector Analysis – Project Starts

Project-starts for most sectors experienced declines against the previous year. Private housing fell18  per cent against the preceding year, but still accounted for the greatest share (55 per cent) of project-starts in the region, totalling £561m. Health was the second-most active sector in the region, accounting for an 11 per cent share of project-starts, despite decreasing 26 per cent against last year’s levels. Infrastructure accounted for 7 per cent of project-starts in the South West, having slipped back 2 per cent against last year’s level to total £68m.

The industrial sector suffered a particularly bad slump of 77 per cent, totalling £64m. However, utilities bucked the national trend with project-starts experiencing a triple-digit (+545 per cent) increase against the previous year to total £30m, accounting for 3 per cent of the region’s total value.

Value of Project-Starts in the South West during the quarter to March 2023 by Sector

Sector Analysis – Detailed Planning Approvals

Like project-starts, private housing was the most active sector in terms of detailed planning approvals in the South West during the quarter to March, accounting for 55 per cent of the region.  Despite its dominance, private housing project approvals only remained flat against the previous year. Industrial, totalling £185m, experienced a weak period with the value having declined 19 per cent compared with the previous year.  Community & amenity faced the steepest fall of 91 per cent, totalling £10m.

Infrastructure detailed planning approvals, accounting for 6 per cent of the region, grew 77 per cent against the previous year to total £91m during the quarter to March. Infrastructure was the only growth sector in the region.

Value of project approvals in the South West during the three months to February 2023 by Sector

Forecast Construction-Starts for the South West

Note: Underlying projects are schemes with a construction value of £250,000 to £100 million.  Forecast updated in April 2023 p – provisional, f – forecast.
Source: Glenigan