Construction industry sees levelling off

09/02/2009

The recent decline in the construction industry has begun to level off, according to new figures, prompting hopes that a recovery may be on the way in the sector.

According to figures published by analysts at Glenigan, the number of contracts awarded during January remained well down on the previous year, but the pace was slower.

Meanwhile, the engineering sector registered its first increase since June 2008.

That was on the back of work coming from government building projects, the analysts said, as ministers looked to boost the construction industry by supporting public sector building projects like schools and hospitals.

"Getting access to finance can be difficult for anyone but it's less so for government and regulated businesses," Glenigan analyst Allen Wilen explained to the Financial Times.

The government has looked to tackle the economic crisis by helping to underpin the construction industry.

In November's pre-Budget report, chancellor Alistair Darling announced plans to bring forward £3 billion of investment over the next three years to help with construction projects.

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