Building boosts GDP
Published: 29 July, 2013
The economy grew 0.6% in the second quarter this year, helped by growth in construction output up 0.9% compared to the first quarter, according to the latest official data.
The last time construction output grew was the final quarter of 2012, when output was up 1.7%.
Noble Francis, economics director at the Construction Products Association, said: “Construction output was at its lowest in 12 years in the first quarter, however, information from within the industry suggests that the first estimate of 0.9% growth will be revised upwards in the ONS’ second and third estimates.
“We’re encouraged to see that all four major sectors within the UK economy are growing. It looks likely that forecasts for the sector and wider economy will be revised upwards.”
Stephen Ratcliffe, director at UKCG, said: “The estimated increase in construction activity is encouraging, though we should not forget that the sector has still shrunk over the last 12 months.”
Michael Dall, lead economist at Barbour ABI, said: “Today’s rise in GDP is welcome news for the UK economy and equally indicates a positive shift in the construction sector, which appears to be showing small improvements following a period of poor performance."