11 May 2012

NI's Construction Sector Eases Marginally

Northern Ireland’s construction sector downturn eased marginally in the first quarter of 2012, according to the latest RICS (Royal Institution of Chartered Surveyors) Construction Market Survey, however Northern Ireland didn't experience the uplift in activity that was evident elsewhere in the UK.

Northern Ireland remains the UK region with the largest number of chartered surveyors reporting declining construction workloads by a significant margin, with a net balance of -43, compared to -3 for Scotland, the next region, and +19 for London and South East. The figure for the UK as a whole was +8.

Although the figures show a growing divergence between Northern Ireland and the rest of the UK, the figure for Northern Ireland was none-the-less an improvement from the fourth quarter of 2011 when the net balance was -53.

All construction sub-sectors in Northern Ireland other than Public Housing experienced a fall in activity during the three month period to March 2012, the survey shows.

Expectations for the construction sector in Northern Ireland also remain negative, with further falls in workloads, employment and profits expected.

RICS Northern Ireland construction spokesman, Jim Sammon, said: "The challenges remain the same; a lack of private finance, delays in processing planning applications and the fact that public spending is under significant pressure. 2012 will be an extremely challenging year, with construction work in Northern Ireland scarce and many local companies competing for work outside of Northern Ireland."

(CD/GK)