British construction output down 3.7 percent in Q1

Monday, 14 May 2012 11:46:24 (GMT+3)   -  
SteelOrbis News

The construction industry output volume in Great Britain in the first quarter this year fell by 4.8 percent compared to the previous quarter and was down 3.7 percent year on year, according to a report released by the UK-based Office for National Statistics (ONS).

Commenting on the figures, UK-based Construction Products Association's (CPA) economics director Noble Francis said, " The construction industry is now firmly back in recession and, although there are some areas of growth, such as private housing, the overall picture shows an industry clearly suffering from the effects of public sector cuts. Public housing output fell 11 percent during the first quarter of 2012 and public non-housing, which covers education and health, fell seven percent in Q1."

"The fall in construction during Q1 is greater than ONS estimated for GDP just a few weeks ago and it is clear that this will have a negative impact upon Q1 GDP, making the recession significantly worse than initially expected," Mr Francis added, noting that private sector construction will remain subdued and the effects of further public sector cuts are likely to ensure that construction has a negative impact on the wider economy over the next 12 months, unless confidence and lending improves significantly.

Tags: Wales , UK , Scotland , Europe , production , construction , European Union | similar articles »