UK construction industry growth in Q2 strongest since 1963

Monday, 16 August 2010 17:16:43 (GMT+2)

Construction industry output of the UK in the second quarter of this year jumped 8.6 percent quarter on quarter, according to a report released by the Office for National Statistics (ONS), as new house building in particular surged, and activity recovered following harsh weather at the start of the year. It was the strongest rise since the second quarter of 1963, when the industry also enjoyed a sharp recovery following a harsh winter. Meanwhile, the year-on-year increase rate stood at 9.07 percent.

Industry analysts say that output of the British construction industry accounts for six percent of the country's gross domestic product, therefore can boost or at least will not pull down overall economic growth.

Meanwhile, following this high growth rate in the construction industry, coupled with the government cancelling some spending on public infrastructure, another large gain in the next quarter is unlikely to appear. On the other hand, the level of construction work as a whole still remains down 8.6 percent from its pre-recession peak.

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