Latest construction figures released today indicate that construction output in January fell by 12% on the previous month.

Noble Francis, economics director at the Construction Products Association was unsurprised by the statistics from ONS, which also showed that output was down by 11% on the previous three months.

Attributing the decline to the effect of public sector cuts, he commented: “What is extremely disconcerting is that while public sector construction activity has fallen 12 per cent in the three months to January compared to the previous three months, private sector construction has fared almost as badly, falling 10 per cent over the same period.”

He is now calling on the Chancellor to consider mechanisms which could boost the sector.

He added: “The government has made much play on private sector construction leading the recovery, as the public sector cuts begin to bite.  

“Unfortunately from the ONS data out today, this recovery is just not happening and even commercial activity, usually the largest private construction sector is showing a fall of 11 percent.

“With this evidence, it is imperative that the Chancellor uses his budget speech later this month to provide an urgent boost to kick start construction activity, so as to get the economic recovery back on track.”