Civils still in recession despite rise in orders

Economic indicators for the  Construction Industry published last week suggest that the worst of the recession may have passed, however,  they also showed that civil engineering had dipped in April and May after consecutive monthly increases in the first quarter of the year.

The market intelligence firm of Glenigan’s said planning applications and tenders increased by c.32% and 27% respectively in May compared with the record low of February and it went on to state that project starts would recover in the second half of 2009.

Read more: interserve plc news

Most new work has come from small public sector projects and from jobs linked to major government projects, in contrast, the first quarter showing an upturn in the value of orders for civil engineering projects worth less than £100M lost momentum in May.

Glenigan’s comparative index showed civil engineering dipping from 140.2 in March to 128.4 in April and 87.8 in May.

Monthly rises in the first quarter were down mainly due to an upturn in roads and energy work, but the flow of transport projects worth less than £100M has dipped over the last two months. Utilities project starts also fell in May as a result of falling water sector orders.

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