Noble Francis of the CPA.

Public sector cuts outweigh construction’s private sector recovery

Published:  12 December, 2011

LONDON: Construction output figures from the Office for National Statistics released for October show that construction output has fallen as the long predicted public sector spending cuts begin to bite.

Construction output fell 2.5% in October compared to the previous month and 2.7% compared to a year earlier.

"Output in the private construction sectors was mixed but even so was still not sufficient to offset the extent of the public sector falls," said Noble Francis, economics director for the Construction Products Association.

"Despite the announcements made in the Chancellor's Autumn Statement, 85% of the capital funding 'boost' will only be available from 2013-14 and capital expenditure is still falling 16% overall.

"As a consequence, public sector cuts and private sector uncertainty are set to ensure that the falls in construction output continue with output in the industry is expected to fall 4% next year.

"An opportunity to change this lies in the proposed Green Deal initiative, but to deliver this government will need to provide more significant impetus for householders than are currently on offer," he said.


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