Stormont collapse hampering construction - survey

Challenging budgets and the lack of a functioning executive are said to be impacting the publicly-funded construction sector

Stormont budget problems and the lack of devolved government are having a negative impact on the local construction sector, a survey suggests.

The Royal Institute of Chartered Surveyors (RICS) indicated workloads fell in the second quarter of 2023.

The biggest falls were in sectors dependent on public spending.

The survey suggests some wider economic challenges appear to be easing, but the lack of a functioning executive is the one challenge that is not improving.

The institute's construction spokesman, Jim Sammon, added the lack of devolved government is "impacting on decision-making and ultimately industry activity".

Weighing on market conditions

Northern Ireland is without a functioning executive or assembly because of the DUP's protest against post-Brexit trade arrangements..

"This is weighing on market conditions with public sector projects playing such an important and vital role in the construction industry in NI," Mr Sammon said.

"We very much need a working NI Executive to ensure that necessary investment in the economy and infrastructure can be delivered efficiently and in a timely way."

Stormont has been without a functioning executive or assembly since last February

Respondents to the survey indicated that profit margins will be squeezed over the next year, although this may be eased by falling inflation.

They also highlighted a "key challenge" would be a skills shortage, according to RICS.

However, this appeared to be "less severe" that recorded in the previous quarter.

RICS chief economist Simon Rubinsohn said: "Infrastructure number remain solid, but the survey provides further evidence of the challenges in delivering residential developments at the current time."