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06/10/2015

Scottish Construction Activity Increases

There has been a surge in construction activity in Scotland, according to the latest JLL/Glenigan Construction Activity Index.

Over the 12 months to Q2 2015, activity in Scotland increased by 17.6%.

Elsewhere, activity rose 16.8% in North West England.

However, action was relatively 'flat' in London and the South East of England.

As the East of England saw a 23% increase in regions, London continues to account for approximately a quarter of all UK construction activity.

The recovery may be related to the strong performance of the industrial & logistics sector, according to JLL and Glenigan.

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The sector saw £3.2bn of starts over the 12 months, a 12.8% increase on the £2.8bn recorded in Q1 2015.

The education sector also performed strongly, experiencing an 11.3% increase in activity to £6.2bn.

Overall, the core commercial sectors of offices [£6.1bn, down 4.6%] and retail [£2.9%, up 4.7%] witnessed more stability in construction volumes.

Helen Gough, head of Buildings & Construction, JLL, said: "Construction activity, previously concentrated in the South East and London, is beginning to bounce back in other major urban areas such as Greater Manchester and Scotland's central belt which included the 80,000 sq ft Iberdrola/Scottish Power HQ under construction in Charing Cross, Glasgow.

"The overall UK picture shows growth slowing slightly over the second quarter with volumes rising by only 2%, down from the extraordinary 7.9% recorded in the first quarter of this year. However, our figures imply that growth in both construction and total output will increase and we expect markets to grow in line with stronger economic prospects over the coming years, and certainly up to 2018."

(LM/CD)

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