News
Glenigan: Northern Ireland Update
10/11/2009
Increased public sector activity over the last year has helped has softened the decline in construction activity in Northern Ireland. Official statistics released last week reveal that construction output in Northern Ireland during the first half of 2009 was 9% down on a year ago. This compares to a 15% decline in construction output for Great Britain.
Glenigan recorded a 19% increase in the value of underlying planning approvals during 2008 as strong public sector spending, combined with previous optimism over the business outlook, led to an increase in approvals across a range of sectors. Whilst planning approvals have subsequently fallen back sharply, previously approved schemes have progressed to site and bolstered workload. For instance, the Northern Ireland Government has significantly increased capital spending in the education sector and the current year has seen a number of school projects starting on site.
The increase in public sector work is evident in the output data, with new social housing output during the first six months of 2009 a third higher than ago and public non-residential work, such as health and education projects, rising 13%. In contrast new private housing output fell 31% over the same period and new commercial work was 34% lower.
Unfortunately the deteriorating economic environment and the recent dip in detailed planning approvals will increasingly impinge on new project starts over the coming year. We expect the flow of project starts to slow during the closing months of 2009 and during 2010. This will further dampen construction activity over the next 18 months as the recent batch of public sector schemes is completed.
Fromt he Glenigan subscriber newsletter, kindly made available to CIMCIG members - see more at http://www.glenigan.com/newsletter09/nov10th_custnews.asp
