Business

Construction decline showing signs of slowing but 'more work needed'

THE decline in Northern Ireland's construction sector shows signs of slowing up - but output is still down more than 12 per cent in the past year.

It puts the value of construction output over the first quarter of 2013 at around £465 million, according to the Office of National Statistics.

The level has remained broadly flat over recent quarters and has decreased by just more than one per cent compared to the last three months of 2012.

The decline was slightly less than the industry in Britain where output decreased by 2.4 per cent over the three months to the end of March.

However, output in the north is less than two-thirds the average level reported in 2005, while Britain was at 85 per cent the 2005 average.

Ulster Unionist economy spokes-woman Sandra Overend said more needed to be done to encourage growth in the sector.

She said the figures showed "a disparity in the recovery of the sector in Northern Ireland when compared with Great Britain".

"We need more government support for the construction industry with additional funding given to infrastructure projects," she said.

"Good news has been forthcoming with the recent announcement of the £40 million Magherafelt Bypass by Ulster Unionist Minister Danny Kennedy but other schemes, such as the A26 Dual Carriageway, should also be given a funding commitment by finance minister Sammy Wilson."

The official figures follow the Ulster Bank's purchasing managers' index (PMI) which said output across the private sector - including in construction - had returned to growth during June.

At the time, the Construction Employers Federation (CEF) said it showed the north's construction industry had reached a "turning point".

It has raised hopes for positive output results when official figures for the second quarter of 2012 are released in October.