Construction Downturn: Scotland
- Published: 08 September 2008 16:57
- Last Updated: 08 September 2008 16:57
Despite several major transport projects (for example, the M74 completion project and the Edinburgh tram line) underlying construction activity in Scotland has been weak this year.
Falls in private housing and office starts have led to a decline in the overall value of construction starts.
However, following stronger than expected new orders data in the second quarter, Glenigan expects the value of construction starts to improve during the last five months of the year, leading to a 1 per cent decline in the value of starts for the year as a whole.
Scotland's prospects remain grim. Planning approvals have fallen by 26 per cent during the first seven months of the year compared to the same period in 2007.
Education construction starts have fallen sharply and the office sector is suffering from the difficult conditions in financial markets.
Private housing construction starts are also set to weaken, although not as severely as in other parts of the UK.
