Construction Downturn: North West
- Published: 08 September 2008 17:00
- Last Updated: 09 September 2008 14:20
Construction in the North-west has suffered in the wake of the downturn.
Construction starts were particularly soft during the first seven months of the year.
While private housing starts have not suffered to the same extent as in other regions, starts in the industrial and retail sectors have fallen sharply and the value of underlying infrastructure starts have pared back.
The fall in starts in the last five months of the year may not prove as severe as recent months. Nevertheless Glenigan estimates the value of construction starts will fall by 4 per cent in 2008.
The outlook for the north-west reflects the conditions confronting construction sectors across the UK. Planning approvals data suggest that private housing, office and retail starts will fall sharply in coming months.
In part, these falls will be offset by an increase in the value of infrastructure starts. Between January and July 2008 the total value of planning approvals has fallen by 14 per cent.
The fall in the flow of new projects will create challenges for firms working across the region.
