The deepening UK recession will impact heavily on the flow of new construction projects throughout 2009. The short-term outlook especially remains harsh. Following sustained falls in projects in the pre-construction pipeline, the Glenigan Index is forecast to contract by almost a quarter year-on-year in the second quarter of 2009.
Residential prospects are expected to deteriorate further over the next six months. Planning approvals have declined as house builders focus upon securing sales at existing sites and reducing their work in progress.
The flow of private non-residential construction is forecast to remain extremely weak during 2009, especially in quarter two. However the public sector is forecast to steadily recover.
Glenigan has seen a recent pick-up in public sector projects at tender stage. This is expected to boost project starts during the second half of 2009.
The outlook for Civil engineering is expected to remain positive during 2009. The sector will benefit from new projects in the renewable energy sector and spending on rail and road infrastructure.
