Featured Region: North East

Post-credit crunch the flow of construction starts have remained at a low ebb in the north east of England. Indeed the value of underlying starts drifted lower in 2012 and 2013, falling by 3% and 1% respectively. Construction output has shadowed the decline in project starts. New work output fell by 2% and 4% during 2012 and 2013, although overall output was buoyed last year by a sharp rise in housing repair maintenance and improvements works, according to ONS.  

However a modest improvement in the value of planning approvals during 2012 and 2104, in large part fuelled by a rise in private housing approvals, points to a potential strengthening in project starts and construction output during the current year and 2015. The value of underlying project starts during the first eight months of 2014 was 15% up on a year earlier, whilst first half construction output was 9% higher.

We expect the rise in activity to continue during the final months of 2014 and during 2015 as the region emerges from a tough two years.

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