2009-11-11 13:46:02 -

The fall in private sector construction work continues to depress project starts across the UK. According to the ‘ Key Construction Markets Intelligence Report : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. ’ the sharpest falls have been in the West Midlands and the North East and across southern England.

Whilst there have been recent signs of improvement in the housing market, developers remain focussed on completing and securing sales on existing projects, rather than on opening new sites. As a result, private housing starts remain weak, although off recent lows. In contrast, the flow of social housing schemes has picked up over the last quarter, indicating that promised government funding is now feeding through.

This move has helped trim the year-on-year decline in the Residential Index

for July to 16%.The Non-residential Index for July was 21% down on a year ago, with the decline led by a slump in private sector work.
Falling rental and capital values and rising vacancy rates continued to deter developers, with planned industrial and commercial schemes being placed on hold. Industrial project starts were especially weak, being 70% down on a year ago, while the value of underlying office and retail schemes fell by a third. Public sector work, and in particular a rise in education projects, has helped soften the decline in the Non-residential Index. However, there are indications that the recent pick-up in government funded projects may lose momentum over coming months.

Whilst major schemes such as the £6.3 billion M25 widening scheme are now underway, the Civil Engineering Index (which excludes schemes over £100 million) has fallen back in recent months due to a scarcity of smaller infrastructure projects and delays to planned energy schemes. In contrast to the strong growth seen during the first quarter, the Civil Engineering Index in July was 15% down on a year ago, despite an increase in utilities projects.

The report ‘Key Construction Markets Intelligence Report’ is available from Report Buyer at: www.reportbuyer.com/industry_manufacturing/construction/commerci .. : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ..



Report BuyerEdwin Bailey, Managing DirectorDirect: +44(0)20

7234 9811Main: +44(0)20 7060 7474