The amount of construction work starting on site in the run-up to Christmas was a fifth lower than the same period a year earlier, research has revealed.
Data from industry intelligence provider Glenigan showed the value of projects getting underway in the final quarter of 2023 was significantly down compared with the end of 2022.
The period suffered the lowest level of underlying starts – excluding very big or small schemes – of any rolling quarter since the first Covid lockdown in 2020.
The value of housing projects breaking ground in Q4 2023 was down 8 per cent from a year earlier, while there was a 26 per cent fall in the civils sector.
Education starts were down more than a fifth year-on-year, while the amount of health work kicking off was two-fifths lower than 12 months earlier.
Hotel and leisure schemes also suffered, dropping by more than a quarter.
There were some bright spots, however, with retail seeing a 6 per cent increase and the community and amenity sector enjoying a 28 per cent rise.
Regionally, the West Midlands had the best end to the year with starts up 16 per cent from the prior period, while the North East also saw a 14 per cent hike.
It was the opposite story in the East Midlands and Northern Ireland, which suffered 51 and 39 per cent drops.
London suffered an 11 per cent dip, and all other areas of the UK had less new work at the end of 2023 than a year earlier.
However, despite the gloomy figures, seasonal adjustment led to a slight uptick in overall starts in the final rolling quarter of the year.
Glenigan economic director Allan Wilen said: “After adjusting for the Christmas wind-down, starts managed to edge slightly higher during these three months. This was partly driven by a modest rise in private housing projects, indicating that developers may be entering the new year with renewed confidence.
“Less encouraging were the declines in non-residential and civil engineering project-starts, which have continued to weaken. This suggests the construction sector can expect tough times in the near term.”
All eyes will now be on the spring Budget ahead of an anticipated general election, Wilen added.
“Many contractors will be expecting the government to clarify or update on the big infrastructure projects put forward in 2023, particularly following the rollback of HS2 plans last year, as part of a wider package to kick-start activity.”