Constructionline latest

Government funding begins to fuel work

Project start data shows increased public sector work values while the private sector continues to suffer. Latest reports suggest the Government’s pledge to fast-track cash to stimulate the construction industry is at last paying dividends. The Glenigan Index for May revealed increases in the value of public sector housing, health, education and community and amenities work, while the private housing, commercial and retail sectors were still suffering.

The index, by business intelligence unit Glenigan, measures the value of project starts against a 2006 average of 100. The public housing index was the biggest riser in May, reaching 128.7, up from 95.2 in April and 78.2 in March.

The Glenigan Index also revealed that the value of the community and amenities work was up by 35 percent in May from a year ago, while the value of education work was up 1.3 percent.

The above provides a stark contrast with private sector work – which was 61.5 percent lower in May on the year, confirming that the Government funding is providing a much needed boost to the construction industry and is starting to accelerate planned projects.

This offers much needed relief from the comparative picture in the industrial, office and retail sectors, where the value of underlying starts is less than half that compared to a year ago.

Back to news