Mixed outlook for construction industry
The figures for construction industry output in the last quarter have been revised to show significant improvements, from 0.5 percent, to 2.3 percent.
This news comes as no surprise for many working in the industry, especially after contraction in the two previous quarters. Nonetheless, public sector cuts have yet to be felt in the industry, which will undoubtedly pose difficulties when they do eventually hit.
Kelly Forrest, senior economist at the Construction Products Association commented: Unfortunately if you examine the figures in detail, they show that whilst private sector work has started to recover, it is nowhere near enough to offset the public spending cuts from the Comprehensive Spending Review. This quarter has seen public sector work fall by less than 1 per cent, so there is plenty more contraction still to come.
The outlook for the next 18 months looks gloomy, and a 2 percent fall is predicted in 2012.
Kelly added: “We are not anticipating a return to growth until 2013, and inevitably this will be a constraint on recovery in the wider economy as construction accounts for nearly 10 percent of GDP.”
This was posted in Bdaily's Members' News section by Ruth Mitchell .