The total value of project starts worth over £100M in October was down 20% on the same period of last year according to research by construction industry analyst Glenigan.
Glenigan’s figures come a week after official government statistics showed that new construction orders were at their lowest level since 1999 (News last week).
“The continued slowdown in major projects that we have seen this year is the result of reduced capital budgets across government departments, uncertainty regarding PFI and hesitation by the private sector to invest in large and often long term projects,” commented Glenigan economist Andrew Whiffin.
Glenigan said starts for major road and rail projects have hit a new low. Only £2.1bn of major road and rail projects began in the year to October compared to £3.8bn in 2010.
“Despite government attempts to promote infrastructure investment, private sector investors are unwilling to commit in the current climate when it comes to complex large scale road and rail projects, and it is this that is constraining starts of major projects in the sector,” said Whiffin.