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Construction Downturn: East Midlands

The East Midlands bucked the national trend and enjoyed a firm 12 per cent rise in the underlying value of projects starting on site during the first seven months of this year.

The region has benefited from a sharp rise in infrastructure and education projects. In addition private housing remained firm, accounting for a quarter of work tracked by Glenigan as starting during the period and little changed on a year ago.

But the flow of projects starting on site is expected to slow over the coming months. The cancellation of planned schemes and a fall in projects securing planning approval will cut the value of work starting on site during the remainder of this year and 2009.

Industrial sector work in particular is set to weaken further, with the value of projects securing planning approval halving during the first seven months of this year.