The research  found the value of construction starts was down 2% as of the end of June, compared to the preceding quarter.

This has been attributed to a minor activity boost in residential starts, while civil engineering starts have also spiked.

In the three months to June 2024, the former was up 6% from the preceding quarter with the latter increasing 12% from 2023 levels.

Private housing has been an underperforming area within residential construction. The value of these starts fell 5% against the previous quarter, a plummet of 32% in comparison to 2023.

Overall, the value of underlying work starting on-site was down 19% from June 2023. A decline in non-residential project starts attributed to this, with a 10% decrease in new projects from the previous quarter.

The value of non-residential starts is therefore down 15% from the year before.

Performance was mixed on a sector-by-sector basis. Hotel & leisure construction starts were down 26% against 2023 levels but up 7% on a quarterly basis.

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In contrast, education starts fell 7% from the previous quarter but are up 10% from 2023.

Drilon Baca, economist at Glenigan, has pointed to the recent general election outcome as improving sentiment and giving companies better confidence to proceed with construction projects.“Looking forward, the new government’s decision to rapidly consult on reforms to the National Planning Policy Framework has unlocked opportunities for the built environment,” said Drilon.“The re-introduction of mandatory housing targets should help to ease the backlog of major housing sites, providing a boost to the industry, through a knock-on effect that will see other verticals benefit through more work.”

The data was also mixed on a regional basis.

Quarterly growth in construction starts were registered in the North East, South West and East Midlands. The North East was the strongest-performing region with a quarterly increase of 56%, up 8% from 2023.

Elsewhere, activity was more subdued with quarterly contractions registered in the North West, London and Wales.

Though Wales recorded the worst quarterly decline, of 17%, London was close behind with a 16% contraction.