Construction Downturn: North East
- Published: 08 September 2008 17:02
- Last Updated: 09 September 2008 14:24
So far this year the North-east of England has fared relatively well, with the value of projects starting on site during January to July up by a fifth on a year earlier.
The value of private housing projects starting on site rose 12 per cent during the first seven months of 2008, although a halving in projects securing planning approval over the same period indicates that this increase will be short-lived.
The sector also enjoyed a marked increase in Government-funded work, with rises in social housing, education and health projects. In addition, the commencement of the £185 million Tyne tunnel helped to offset an underlying drop in smaller infrastructure projects.
Nevertheless, the flow of new projects starts in the region is expected to slow over the coming months following a 26 per cent drop in the value of planning approvals.
This is expected to limit the year-on-year increase in the project starts for 2008 to 3 per cent before slipping back during 2009.
