Construction Downturn: Wales

Wales has experienced a poor construction market since early 2007.

Since the onset of the credit crunch the region has continued to deteriorate. Construction starts were sharply lower in the first seven months of this year.

We expect the worsening economic conditions to accelerate the fall in project starts during the last five months of the year. Glenigan estimates that construction starts in Wales will fall by 21 per cent in 2008.

Outside infrastructure, the outlook for construction sectors in Wales is poor. Planning applications have fallen substantially in the first seven months of 2008, down by 23 per cent compared to the same period last year.

Retail, offices and social housing are among the sectors with the biggest falls.

Private housing construction starts are also set to fall further, with approvals down 28 per cent in the first seven months of the year.