The JLL & Glenigan UK Commercial
Construction Activity Index

First Look: Q4 2017

Construction activity stabilises after
prolonged period of decline

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
Commercial construction in Q4

Commercial construction in Q4

New builds in Q4
New builds in Q4

New builds in Q4

Q4 2017 Sector Dynamics

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

Offices
Offices
Retail
Retail
Hotels
Hotels
Industrial
Industrial
Medical
Medical
Education
Education
Community
Community

The picture across the UK

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

Scotland
Scotland
North East
North East
Northern Ireland
Northern Ireland
Wales
Wales
South West
South West
London
London
East of England
East of England
South East
South East
Yorkshire & Humber
Yorkshire & Humber
East Midlands
East Midlands
West Midlands
West Midlands
North West
North West

Q4 2017

East Midlands -0.8%
East of England 5.0%
London 10.1%
North East -13.4%
North Ireland -13.4%
North West 18.0%
South East -1.1%
South West -6.6%
Scotland 18.0%
West Midlands 2.5%
Wales 9.1%
Yorkshire & Humber 2.9%