Construction decline adds to economic woes
Published: 26 January, 2012
LONDON: The fall in construction output was one of the main contributors to the fall in UK GDP by 0.2% in the final quarter of 2011 following growth of just 0.6% in the previous two quarters.
Noble Francis, economics director at the Construction Products Association, said: "Unfortunately the prospects looking forward are even worse, as construction is expected to fall a further 5.2% during 2012, exacerbating the problems in an industry that has already lost 300,000 jobs, and severely hindering growth for the economy as a whole."
"Undoubtedly the problems in the euro zone have increased uncertainty in the private sector making investors highly risk averse to investment. However, this does not tell the whole story, as Capital Investment from the public sector, which accounts for more than one-third of total construction activity, will have fallen 30% by the end of 2013. As construction has been highlighted by government as essential for recovery, the decline is severely harming prospects for the sector as well as constraining overall economic growth," he said.