Infrastructure spend crumbles away

Published:  08 November, 2010

LONDON/YORK: The UK construction industry will drag down growth in 2011 and 2012, according to a report by analysts, Hewes & Associates.

The forecaster said that without the stimuli of government social housing and the building of new infrastructure, a douple dip slump for construction could mean that the UK's GDP would not grow at all in the next two years.

Analyst Martin Hewes said economists were being too optimistic. "Most construction people I talk to are wary of the future."

This sentiment was echoed by the Builders' Merchants Federation's managing director Chris Pateman. At the weekend's Autumn conference in York, he stated that since the change in sampling methods by the Office of National Statistics in January, the figures shown for construction are similar to those of 2007.

"ONS figures say we have never had it so good," Mr Pateman said. He added that if merchants were looking for accurate predictions, they should heed the data being issued by the BMF and the Construction Products Association.

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