Housing starts to grow this year
Published: 19 January, 2011
LONDON: Construction starts fell by 29% during the last quarter of 2010 compared to the same period in 2009, according to data issued by Glenigan.
"Extreme weather conditions exacerbated the seasonal lull combined with the slowdown in government investment resulted in one of the lowest monthly total project starts in years," said Glenigan economist James Abraham.
Residential projects were 31% down, non-residential 20% down and civil engineering 50% lower than the same period a year ago.
Glenigan forecasts that construction projects starts will fall by 7% this year compared to 2010 following a 6% year-on-year increase in the value of starts from 2009 to 2010, primarily fuelled by the private sector.
Private housing, industrial, office, retail and civil engineering projects starts are expected to grow this year, while social housing, hotel and leisure, education, health and community & amenity project starts are forecast to decline.
Allan Wilen, economics director of Glenigan, said: "The impact of planned government investment cuts is clear with only rail avoiding the axe and increasing private sector confidence not quite strong enough to counter government cuts."