UK commercial construction industry stable after prolonged period of decline
JLL and Glenigan’s UK Commercial Construction Activity Index for Q4 2017 reveals improved sentiment across the entire UK construction sector alongside an overall increase in construction activity for the second consecutive quarter, following growth of 7.9% in Q3, halting the sharp decline seen since mid-2015.
The report also highlights movement across different sectors, with growth in Q4 predominantly driven by the office (up 11.2% to £4.5 billion), education (up 12.0% to £3.5 billion) and community (up 19.9% to £0.6 billion) sectors. Industrial, retail and hotel construction were broadly stable, while the medical sector saw a slight dip of 4.9%. Commercial construction activity in the 12 months to the end of Q4 2017 increased to £15.5 billion, up 5.5% on the previous quarter. Within this, new build commercial activity increased to £10.0 billion, reflecting growth of 6.7%.
Regionally, activity increased too, with total construction growing 4.8% to £9.1 billion in Q4. Scotland and the North West were the strongest performers, with increases of 18.0% in both regions, led by activity in the education sector. London also saw growth in construction activity, following consecutive quarters of decline. Activity increased by 10.1% to £4.5 billion, with the £1.0 billion Google HQ in King’s Cross a key contributing factor to this rise.
The full report is available to download here.