THE construction industry in the North-East has been the hardest hit in the economic downturn, new research has shown.

The study, by the Centre for Economics and Business Research and business intelligence unit Glenigan, found the economic benefit of spending on construction in the North-East fell by 23.4 per cent between 2007 and 2010 from £3bn to £2.3bn.

Construction output also dropped by 27 per cent in the region between 2008 and 2010.

The report, commissioned by the UK Contractors Group, found London and Scotland were least effected with the economic benefit of construction spending falling by just 2.2 per cent in both areas.