Infrastructure spending slumps

GOVERNMENT plans to boost the economy by investing in infrastructure projects has yet to show signs of success, according to a new survey.

The Royal Institution of Chartered Surveyors’ Construction Market Survey showed that infrastructure workloads dropped during the three months to June, with a net balance of 11% of surveyors reporting falling workloads.

Long-term trends show that the sector has seen little improvement since 2007 despite attempts to encourage investment.

This low level of activity was reflected across the construction sector as a whole in the region, with 10% more respondents reporting falls rather than rises in workloads.

However, it is the public sector where the pressure continues to be greatest.

Profit expectations from construction firms in the region continue to deteriorate, with the net balance falling from -18 to -21 percent, reflecting a continuing pressure on margins as input costs rise more rapidly than prices. Increasing competition is also leading to firms bidding for work at below cost prices.

Darren Hurst of property consultancy AA Projects, said: “There is a large number of Academy Schools in the North West which applied for funding through the private funding scheme, to improve the condition of their property stock.

“Only a small percentage of schools were successful with their funding application. A greater level of such private funding in subsequent rounds would have a direct positive impact on the construction industry and for all consultants appointed.”