NI Construction Sector 'Worst Off In UK'

The downturn in the Northern Ireland construction sector has eased slightly in the third quarter of the year, but the industry remains in a deep recession, according to the latest RICS (Royal Institution of Chartered Surveyors) Construction Market Survey, out today.

There also remains a significant divergence between the performance of the construction industry in Northern Ireland and the rest of the UK, the study highlights.

As house prices in Northern Ireland fell again last month to their lowest level since November 2010 - again according to a survey by RICS - local builders continued to experience significantly contracting workloads.

Today's report shows that London and the South East of England experienced growing construction workloads between the beginning of July and the end of September, whilst Northern Ireland, was at the other end of the spectrum and still fell.

Northern Ireland remains the UK region with the largest number of construction sector chartered surveyors experiencing declining workloads, with a net balance of -50 (-64 in Q2), compared to a GB average of -1, and +12 for London and the South East.

All construction sub-sectors in Northern Ireland experienced a fall in activity during the three-month period.

Expectations for the construction sector in Northern Ireland also remain negative, with further falls in workloads, employment and profits expected - however chartered surveyors were, on the whole, less negative about the outlook than in the previous quarter.

RICS Northern Ireland construction spokesman, Jim Sammon, said: "Whilst the recent publication of the draft Programme for Government is welcome, there is little to suggest that its implementation would make a significant difference to the challenges facing the construction sector, nor lead to a step change in our infrastructure.

"We would call for the high prioritisation of capital investment and the fast-tracking of economically important planning applications. Joined up working in government is also extremely important to ensure that an efficient and prioritised investment strategy that delivers where and when it is needed," Mr Sammon added, noting that RICS is the world's leading qualification when it comes to professional standards in land, property and construction.

(BMcC)