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Value of construction starts down 8%
The value of construction project starts fell 8% in January compared to January 2009
The Glenigan non-residential index for January was 88.1 compared with 102.3 in January 2009, mainly due to project starts facing delays from January’s extreme weather, with activity in the non-residential sector being particularly weak.
However there are some signs that market conditions are now stabilising. Since April 2009, more Government-funded work has helped partially offset the impact of weak private sector investment while the flow of education projects has remained firm.
“The forecast increase in private sector projects will be offset by government spending cuts, making for a slow and fragile recovery over the next two years,” said Allan Wilen, economics director at Glenigan.
Construction on new housing projects recovered well during the autumn, peaking at 27% higher by value year on year in October 2009.
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