Featured Region: Yorkshire

Shrinking public sector funding has put construction activity in the region under pressure. Indeed public sector work is expected to remain weak and potentially decline further over the forecast period. However a rejuvenating private sector is now fuelling growth, with improvements in the commercial sectors evident in the ONS output figures and Glenigan data on project starts and planning approvals. The private residential sector is already in growth mode, and workloads will continue to improve in line with economic conditions.

The last two years have seen a steady recovery in construction activity in Yorkshire and the Humber, with project starts increasing by 5% in 2012 and 4% last year. This began to feed through to a 5% rise in output in the second half of 2013 with output growth quickening further during the first half of this year.

This positive trend is forecast to continue near term. Detailed planning approvals rose 12% last year, supporting a sharp rise in project starts during the first eight months of 2014 that will feed through to regional output during 2014 and 2015.

However a slowing in detailed planning approvals after the strong growth see in 2012 and 2013 points to a moderation in project starts next year.