Construction sector impacts UK 4Q11 figures

Construction sector impacts UK 4Q11 figures
Published: 26 January 2012

Tagged Under: UK 

Fourth quarter 2011 UK GDP figures published yesterday by the Office of National Statistics show that the domestic economy contracted by 0.2 per cent, with the main contributors being the manufacturing and construction sectors which fell 0.9 and 0.5 per cent, respectively.

Commenting on the outlook, Noble Francis, Economics Director at the Construction Products Association (CPA) said: ‘Unfortunately the prospects looking forward are even worse, as construction is expected to fall a further 5.2 per cent 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 per cent 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."