The construction industry has received a boost thanks to social housing projects set by the government.
That is the conclusion of research by the Glenigan Index, which has indicated that there was an increase in social housing projects year-on-year in the second quarter of 2009.
However there was still a decline of 16 per cent in the sector, a lower figure than in previous months.
Allan Wilen, economics director at Glenigan, said: "The fall in new project starts is forecast to moderate over the coming months as the initial impact of the credit crunch eases.
"However, with the UK economy in recession the flow of private sector projects in particular will remain weak."
Some regions did see a rise in projects in the three months to July, notably Northern Ireland, Scotland and Yorkshire & the Humber, mostly thanks to new civil engineering and public sector schemes.