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News Archive - June 2009Project Starts Forecast to Recover in Second Half of 2009PLANNING applications and tenders were 32% and 27% higher respectively in May than February, according to the analyst Glenigan, offering tentative signs that the flow of new construction projects is steadying after the sharp declines seen since the middle of last year. A rise in the number of construction projects starting on site in May 2009 trimmed the year-on-year fall in the Glenigan Index to a 25% year-on-year decline, compared to falls of 35% and 30% in March and April respectively. The majority of the new work has been smaller public sector projects and jobs associated to major Government projects. Glenigan expects the value of underlying construction project starts during the second half of 2009 will be little changed on a year earlier, though much lower than two years ago. Construction project starts in the education and community & amenity sectors increased during May 2009, providing further evidence that additional Government funding is starting to accelerate planned projects. This is “much needed relief,” says Glenigan, from the comparative picture in the industrial, office and retail sectors where the value of underlying starts is less than half that compared to a year ago. « |
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