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.

Sign Up

For the Builders' Merchants News enewsletter.

In the spotlight


Builders Merchants Vacancies – UK Wide

At Arco, we are an industry specific recruitment consultancy, providing sales and managerial staff Nationwide to Merchants, Distributors and Manufacturers of Building Materials within the Construction Sales Sector. Priding ourselves on our unparalleled customer service and hard work, we offer a fresh, innovative and personal approach to recruitment specifically designed to meet our clients’ needs and candidates’ skills.

Guest Blog by Simon Damp

Is DIY a lost art?

As time goes by, the art of do-it-yourself when it comes to activities around the home and garden is fast becoming more and more of a lost art.