Construction starts stalled ahead of general election with post-election surge expected
Construction project starts seem to have stalled in the weeks running up to the general election according to a recent survey, however analysis of historical data suggests construction can expect a boom time following the general election.
Project starts appear to have dropped by 11% in the run up to April according to industry analysts Glenigan, corroborating ONS data which suggest the downturn in the overall economy had in part been due to construction’s wait and see approach.
Research by Scape, which analysed industry output following elections since 1955 suggests that the construction industry is likely to grow with sustained levels of growth following the general election, irrespective of which party comes to power, creating an increased demand for construction jobs, building supplies and materials.
Allan Wilén, Economics Director at Glenigan, said: “We expect construction starts to spring back during the second half of the year, so long as a credible government is formed and the prospect of a second general election later in the year fades. This would mitigate the impact of the recent slowdown.
“Continued improvements in planning approvals add weight to the view that this is a pause rather than a permanent shift in market conditions.”
According to the monthly CIPS / Markit Construction Purchasing Managers’ Index (PMI), construction activity in April slowed to its lowest levels in two almost two years whilst employment grew a little which indicates construction firms believe the market will rebound following the election.
As a builders merchants in Preston, Lancashire, dealing with tradespeople and building firms throughout the UK, we haven't seen a noticeable impact from the slowdown in construction starts in the last few of months, in fact we've seen a growth in sales of building supplies, PPE and workwear, which suggests the recovery in the construction industry is still in full swing, and the industry will continue to be a huge engine for the economy following the election.