UK commercial construction industry stable after prolonged decline
The report also highlights movement across different sectors, with growth in Q4 predominantly driven by the office (up 11.2% to £4.5 billion), education (up 12.0% to £3.5 billion) and community (up 19.9% to £0.6 billion) sectors. Industrial, retail and hotel construction were broadly stable, while the medical sector saw a slight dip of 4.9%. Commercial construction activity in the 12 months to the end of Q4 2017 increased to £15.5 billion, up 5.5% on the previous quarter. Within this, new build commercial activity increased to £10.0 billion, reflecting growth of 6.7%.
Regionally, activity increased too, with total construction growing 4.8% to £9.1 billion in Q4. Scotland and the North West were the strongest performers, with increases of 18.0% in both regions, led by activity in the education sector. London also saw growth in construction activity, following consecutive quarters of decline. Activity increased by 10.1% to £4.5 billion, with the £1.0 billion Google HQ in King’s Cross a key contributing factor to this rise.