Glenigan forecasts stabilising of construction project starts
The June Glenigan Index shows that promised Government investment has begun to filter through, helping to steady the flow of new projects starting on site after the sharp falls endured over the last year. The index tracks the underlying value of construction projects starting on site and saw the year-on-year decline in June 2009 ease to 20%.
This figure compares with year-on-year declines of 30% in recent months. Increasing public-sector projects, primarily in the education, health and social housing sectors, are the main areas of support and are helping to counter sharp falls in the flow of private-sector projects.
Allan Wilén, economics director, comments, ‘Glenigan forecasts that the recent recovery in public-sector starts will gather momentum during the second half of 2009. This will drive the overall stabilisation in construction project starts. Growing pressure on Government finances will temper the momentum in the medium term, however.’
