Featured Region: North East

Underlying project starts in the North East have fallen through this year, down 14% in the nine months to September. Starts in the North East remains further from their pre-crisis level during 2012 than any other region we are tracking; it is expected that 2013 as a whole will see the second consecutive year of declining starts.

Starts during 2012 were down 3% from 2011’s level. Private and social housing starts have increased this year, and utilities starts have been strong, however starts in most other sectors we currently track have continued to contract in the region.

Official statistics paint a slightly brighter picture for the region; despite a 2% fall in new work, output across the region was up 2% over the first half of the year due to an increase in repair and maintenance work. This was due to a sharp increase in housing R&M.

Despite the poor start to the year outlined above, the rate of decline at least eased in the third quarter of this year and we are forecasting improvements in underlying starts towards the end of the year.

The North East consists of the following Counties:  Cleveland, County Durham, Northumberland, Tyne & Wear.