Construction faces a ‘very uncertain future’

Published:  16 April, 2012

UK: The Construction Products Association remains cautious about the prospects for the construction industry for the rest of the year, despite the latest ONS figures for construction output in February which show an increase of 6% compared with January.

Noble Francis, the CPA's economics director, said: "February's positive figure has to be seen against the background of a 13% decline in output in January and is 5% below the level of output in February last year.

"Construction faces a very uncertain future with the latest new orders falling 14%, and private sector investment still not growing at a rate to compensate for the sharp falls in public sector spending on construction. Despite these positive figures for February, it is now almost inevitable that construction output will fall in the first quarter of the year and have a negative effect on the growth in GDP."

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