The outlook for the healthcare construction sector is looking up after the number of project starts increased by 8% in the three months to May compared to the previous quarter.

The figures are provided in the June edition of Glenigan’s Construction Industry Forecast, which showed that the value of underlying work starting on site across all construction sectors increased by 9% in the last three months.

However, this figure remains 19% lower than a year ago across all sectors and remains unchanged for the healthcare sector.

Commenting on the findings, Glenigan’s senior economist, Rhys Gadsby, said “This month we have seen a slight uptick in project-starts, and this increase in work commencing on-site suggests much-desired signs of recovery after almost a year of decline.

“I am hopeful that the June Index signifies a turning point for the construction industry following a very-challenging period.”

But he warned of continuing issues with ‘external influences’, particularly the fallout from the Russia-Ukraine War and Brexit, which continue to send shockwaves through UK business and industry, with supply chains tightly squeezed throughout the first half of 2022.

“Inevitably, this has led to building product and manpower shortages as well as soaring prices with construction material inflation rising around 25% year on year,” the report states.

“This has resulted in significant delays to projects commencing on-site, as start dates are pushed back to accommodate higher material and labour costs.”

Gadsby adds: “Sharp increases in labour and material costs have presented a challenging few months for the industry, but a near 10% increase in the value of project starts is a welcome change of direction, offering a promising outlook for the second half of 2022.”