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 on-going weakness in the wider economy is arguably just as big as a stumbling block for construction growth over the next few years.  However, there are signs that Northern Ireland is near the trough of this downturn and the value of underlying project starts are expected to improve from here on.

Last year we recorded an 11% decline in underlying project starts, sharp declines in education and health projects led the fall, retail and social housing starts also declined from 2011 levels.

During the first six months of 2013 we recorded a 5% increase in underlying starts compared to the same period of 2012. Gains have been recorded in both the civils sectors as well as the retail and social housing sectors. This positive trend is expected to continue for the remainder of 2013 with an overall gain forecast for the full year. Next year we expect starts to slip back slightly from this level as some sectors consolidate.

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