Overall construction increased for the second consecutive quarter, following growth of 7.9% in Q3, halting the sharp decline seen since mid-2015.
Despite the recent uptick, activity remains slightly down on this time last year. Total construction is lower than in the 12 months to Q4 2016, with new build activity also down. In addition, we are still seeing a significant reduction in construction activity over the longer term, with total construction 37.3% lower than at the end of 2015, and 34.6% lower than the end of 2014. However, it appears that activity bottomed out in the immediate aftermath of the EU referendum in 2016 and we have now seen a return to modest growth.
Commercial construction in Q4
New builds in Q4
Growth in Q4 was predominantly driven by the office, education and community sectors. Industrial, retail and hotel construction were broadly stable, while the medical sector saw a slight dip
There was a small uptick in activity across the regions in Q4, with an increase in total construction. Scotland and the North West were the strongest performers. London also saw growth in construction activity, following consecutive quarters of decline.
Click on the circles to see the city indexes by region
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