UK construction returns to recession
Figures from the Office of National Statistics (ONS) for GDP in the first quarter of 2012 show that the UK economy and construction industry returned to recession with a fall of 0.2% fall and 3% respectively.
Commenting on these figures, Noble Francis, Construction Products Association Economics Director said: "Given the sharp effects of public sector spending cuts over the past 12 months it is unsurprising to see that construction returned to recession in the first quarter with a fall of 3% following the 0.2% fall in Q4. Furthermore, with new orders for construction falling 14% in 2011, the industry is likely to endure further falls near-term. Our latest forecasts for construction anticipate that the industry will fall considerably this year and remain flat in 2013, severely delaying recovery for the economy as a whole."
"Given that independent economic analysis has shown clearly that for every pound spent in construction, GBP2.84 is generated for the wider economy, it is essential that government does its utmost to switch its current spending towards the more productive capital spending."