Construction output 'precarious'

Published:  17 August, 2010

LONDON: The construction industry is still in a 'very precarious position', despite Office of National Statistics figures showing second quarter construction output up 9% said the Construction Products Association.

Michael Ankers, the association's chief executive, said: "Today's figures show the strongest quarterly increase in output in nearly 50 years, but they flatter to deceive.

"Construction was particularly badly hit by the poor weather in the early part of the year and so the second quarter was always going to see a sharp pick up. In addition, a number of public sector projects were started in the run up to the general election and this undoubtedly helped boost output in the spring."

The Association is concerned about the prospects for growth in the rest of the year.

The latest Construction Products Association trade survey, released earlier this week, shows that on balance product manufacturers and suppliers anticipate a fall in sales in the rest of the year.

With cuts in public spending on projects like the Building Schools for the Future already announced and further cuts inevitable after the Comprehensive Spending Review on 20 October, the future remains very uncertain.

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