Noble Francis: this is a critical time for the construction industry.

Construction continues to suffer as recession drags on

Published:  02 November, 2009

LONDON: Construction has been hit more severely than most other sectors and conditions deteriorated further during the third quarter of 2009, according to the latest Construction Trade Survey published today.

With the economy still in decline, the prospects in most areas of construction appear bleak as orders and enquiries for civil engineering contractors, building contractors and specialist contractors continue to fall, along with sales of construction products. All this points to the construction industry facing its sharpest fall on record this year with a further decline in output expected in 2010.

Speaking about the survey, Noble Francis, economics director at the Construction Products Association said: “With sharp falls currently in private sector construction and the potential for sharp spending cuts post-election in public sector construction, this is a critical time for the industry, which is not expected to see any growth until 2011 at the earliest.”

Julia Evans, chief executive of the National Federation of Builders added: “The survey results give a glimmer of hope in falling costs for contractors and a light at the end of the tunnel with predictions of better conditions in 2011.

“However, the underlying message is still one of intense pressure from falling tender prices, falling demand and increasing unemployment. It is imperative that capital spending is maintained, rather than reduced, to stem the loss of skills and to ensure that there is still a viable industry when the economy recovers.’

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