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Decline in construction 'slowing' Decline in construction 'slowing'
(about 1 hour later)
The rate of decline of the building industry in Wales has slowed, a survey suggests.The rate of decline of the building industry in Wales has slowed, a survey suggests.
The Royal Institution of Chartered Surveyors (RICS)'s poll found the fall in construction workloads, now in its fourth quarter, was less steep. The Royal Institution of Chartered Surveyors (RICS) found the fall in construction workloads, now in its fourth quarter, was less steep.
The improvement was most noticeable in Wales's public non-housing and infrastructure sectors.The improvement was most noticeable in Wales's public non-housing and infrastructure sectors.
The Federation of Master Builders (FMB) said: "We don't think we've reached the bottom yet but it's a deceleration."The Federation of Master Builders (FMB) said: "We don't think we've reached the bottom yet but it's a deceleration."
Published quarterly, the RICS Construction Market Survey looks at the £80bn industry in the UK. Published quarterly, the RICS' construction market survey looks at the £80bn industry in the UK.
It features trends in house building activity, labour availability, expected profit margins and publicly-funded building infrastructure projects.It features trends in house building activity, labour availability, expected profit margins and publicly-funded building infrastructure projects.
Public sector projects will play a key role in any recovery Simon Rubinsohn, RICS chief economistPublic sector projects will play a key role in any recovery Simon Rubinsohn, RICS chief economist
In the first quarter of 2009, 46% of surveyors reported that construction workloads in Wales had fallen compared to 76% making that report in the previous quarter. In the first quarter of 2009, 46% of surveyors reported that construction workloads in Wales had fallen.
This compares to 76% making that report in the previous quarter.
Workloads stabilised in the public housing sector but continued to fall at the same rapid pace in the private industrial and private housing sectors.Workloads stabilised in the public housing sector but continued to fall at the same rapid pace in the private industrial and private housing sectors.
Across the UK, the number of surveyors reporting a fall rather than a rise in overall workloads improved by two percentage points.Across the UK, the number of surveyors reporting a fall rather than a rise in overall workloads improved by two percentage points.
The south west of England fared best, followed by the north of England, the Midlands/East Anglia and Wales. Scotland fared the poorest.The south west of England fared best, followed by the north of England, the Midlands/East Anglia and Wales. Scotland fared the poorest.
The assembly government have been far more proactive than Westminster in addressing this Chris Pateman, Builders Merchants Federation The significant thing is that the private sector is still deeply in the doldrums Chris Pateman, Builders Merchants Federation
Simon Rubinsohn, RICS chief economist, said the slight easing could be aligned to recent signs of a gentle pick-up in activity in the housing market.Simon Rubinsohn, RICS chief economist, said the slight easing could be aligned to recent signs of a gentle pick-up in activity in the housing market.
He said: "Activity is still declining across the construction sector, but it appears to be doing so at a lesser rate than was previously the case and public sector projects will play a key role in any recovery as long as the finance is made available to prevent them from stalling. "He said: "Activity is still declining across the construction sector, but it appears to be doing so at a lesser rate than was previously the case and public sector projects will play a key role in any recovery as long as the finance is made available to prevent them from stalling. "
But he added: "Despite some sub-sectors showing slightly more positive signs, construction output is likely to post a double digit drop over the course of 2009 with a further loss of employment and skills in the industry."But he added: "Despite some sub-sectors showing slightly more positive signs, construction output is likely to post a double digit drop over the course of 2009 with a further loss of employment and skills in the industry."
Chris Pateman, of the Builders Merchants Federation, said the survey's findings in Wales tallied with what he expected, particularly with regard to the public sector.Chris Pateman, of the Builders Merchants Federation, said the survey's findings in Wales tallied with what he expected, particularly with regard to the public sector.
'Doldrums''Doldrums'
He said: "We know that the Welsh Assembly Government has been very concerned about the falling state of the construction industry in Wales. They have pulled forward some spending.He said: "We know that the Welsh Assembly Government has been very concerned about the falling state of the construction industry in Wales. They have pulled forward some spending.
"The assembly government have been far more proactive than Westminster in addressing this.""The assembly government have been far more proactive than Westminster in addressing this."
However Mr Pateman added that the slowdown in the decline of public construction workloads did not signify a slowdown in the recession.However Mr Pateman added that the slowdown in the decline of public construction workloads did not signify a slowdown in the recession.
He explained: "The significant thing is that the private sector is still deeply in the doldrums.He explained: "The significant thing is that the private sector is still deeply in the doldrums.
"If the recession was lifting I would expect to see consumer spending feeding through to the marketplace.""If the recession was lifting I would expect to see consumer spending feeding through to the marketplace."
Richard Jenkins, FMB director in Wales, said his organisation's own quarterly survey showed Wales leading the way in the UK construction industry.Richard Jenkins, FMB director in Wales, said his organisation's own quarterly survey showed Wales leading the way in the UK construction industry.
He explained: "We are still declining. We are still in negative growth, but it is much less and Wales is in a more favourable position than the rest of the UK.He explained: "We are still declining. We are still in negative growth, but it is much less and Wales is in a more favourable position than the rest of the UK.
'Alive''Alive'
"We think this is a little bit of a steadying. We don't think we have reached the bottom yet but it's a deceleration. We are convinced it's definitely slowing down. It's not a great picture but it's better than three months ago.""We think this is a little bit of a steadying. We don't think we have reached the bottom yet but it's a deceleration. We are convinced it's definitely slowing down. It's not a great picture but it's better than three months ago."
Mr Jenkins also said that the Welsh Assembly Government could take its share of credit for the results.Mr Jenkins also said that the Welsh Assembly Government could take its share of credit for the results.
He said: "The assembly government is doing its best to keep the construction industry in Wales alive."He said: "The assembly government is doing its best to keep the construction industry in Wales alive."