Featured Region: Northern Ireland

Underlying value of construction projects starting on site. (Excludes individual projects of more than £100 million and framework agreements).

The value of underlying project starts has been declining for some time in Northern Ireland. The region weathered the initial impact of the credit crunch due to consistent government spending. However, that has since declined, and the region has subsequently seen an exceptionally reduced level of work coming through. While government cuts are one downward pressure, the ongoing economic weakness is arguably just as big as a stumbling block for construction growth over the next few years. The house market is weak and commercial building almost non-existent. However, there are signs that Northern Ireland is near the trough of this downturn, and there could be factors which improve prospects. There are important decisions to be made over Northern Ireland being given autonomy to lower its rate of corporation tax. This would allow effective competition with the Republic of Ireland, which still retains its 12.5% rate. If a reduction materialises, Belfast will be well placed to capitalise on its lower occupation and business costs in attracting much needed foreign direct investment into the city.

Northern Ireland consists of the following Counties: Co. Antrim, Co. Armagh, Co. Down, Co. Fermanagh, Co. Londonderry, Co. Tyrone.