Featured Region: Yorkshire & the Humber

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. However emerging weakness in commercial starts and approvals during 2014 points to slowing growth in 2015.

The last two years have seen recovery in construction activity in Yorkshire and the Humber gathering pace. Project starts increased by 4% in 2013 and by 16% in 2014. Similarly output rose by 5% in 2013, with growth quickening to 12% during 2014.

Commercial starts fell back in 2014 after the strong improvements seen the previous year, with growth in starts maintained by the private housing and civil engineering sectors. While this will filter through into lower levels of commercial output during 2015, sustained growth in contract awards suggests growth in new starts will be maintained. However a slowing in detailed planning approvals last year after the strong growth seen in 2012 and 2013 points to a moderation in project starts futher ahead.