The value of underlying work starting on-site during the three months to March fell 35% against the preceding three-month period to stand 46% lower than a year ago, according to the Glenigan Index of construction.
Residential construction starts slipped back 39% on the preceding three months and 51% against the previous year.
Non-residential project starts fell by 33% against the preceding three months to stand 42% down on a year ago.
Civil engineering work starting on-site declined 28% against the preceding three months, 29% down against the previous year.
Heading into Q2 2023, the April Index shows construction starts continuing to slide on a downhill trajectory.
Similar to the February and March editions of the Index, project-start performance remained frustratingly slow across the sector throughout Q1 amid eye-watering price inflation and intense economic uncertainty.
This protracted period of depression is emphasised through a massive 46% decline during the Index period, compared to last year’s figures, as climbing interest rates keep public and private investors cautious about committing to new projects.
Commenting on the findings, Glenigan’s economic director, Allan Willen, said: “Poor construction performance in the three months to March is disappointing but unsurprising, with a continued slowdown in project starts reflecting the UK’s stagnant economic situation.
“Despite the Chancellor’s confirmation that we are not entering a recession in last month’s Budget, the UK economic outlook remains weak. Investor and consumer confidence is at a low ebb which has, inevitably, stalled private sector activity.
“Public sector starts have also disappointed, reflecting capital under-spending by a number of government departments during the last financial year.
“However, the Chancellor also used the Spring Statement as an opportunity to bring forward some of these underspent funds to the new financial year.
“This is potentially good news for those contractors specialising in critical infrastructure, where this money will likely be committed, helping to boost the industry through greater investment in mega-projects and transport upgrades throughout the rest of 2023.”
