Construction drags UK into double-dip recession

Aaron Morby 6 years ago
Share

The UK economy has plunged back into recession according to latest Government figures for GDP released this morning.

The 0.2% fall in GDP in the first quarter of the year sinks the UK into its first double dip recession since the seventies and raises pressure on the Government to stimulate the economy.

The latest economic data showed construction dragging down the overall economy after it fell 3% in the first three months of 2012.

The preliminary figures also means the industry is now officially in recession again after a 0.2% fall in GDP in the last quarter of 2011.

The worrying economic figures will heighten calls for the chancellor to soften his austerity drive and stimulate construction.

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.

“With new orders for construction falling 14% in 2011, the industry is likely to endure further falls near-term.

“Given that independent economic analysis has shown clearly that for every £1 spent in construction, £2.84 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.”

Mike Leonard, director of the Modern Masonry Alliance, said: “This double dip is hugely damaging.

“We have repeatedly warned that a failure to drive the construction of new homes, RMI and infrastructure would result in a lack of growth and rising unemployment.”

The poor six month period means that construction output decreased by 0.5% in the 12 months to March this year.

Simon Rawlinson, Head of Strategic Research at EC Harris  said: “We have effectively lost the gains that were made in 2011 and repeated the pattern of 2010 when we saw a loss of 9.3% over a six month period.”

Latest news

Carillion wins another £11.6m rail electrification deal

Network Rail awards station upgrade deal on Glasgow to Edinburgh route
60 mins ago

Costain director joins pipe-lining specialist

Tim Bowen takes the helm at Aquam to deliver ambitious expansion plan
4 hours ago

Highways England to trial self healing roads

Sunflower oil capsules in asphalt could save £260m a year
3 hours ago

Tarmac swaps quarries for Breedon concrete plants

Tarmac offloads four quarries for 27 Breedon ready-mixed concrete plants
3 hours ago

Mace wins £140m London School of Economics project

Work to start on Marshall building once McGee completes demolition in the spring
12 hours ago

Construction start date for £350m Tower Hamlets site

Planning go-ahead for Galliard Homes and Lindhill at Ailsa Wharf
20 hours ago

Specialist Mick George moves into housebuilding

Civils contractor forms joint venture to target housing market
4 hours ago

Fusion21 launches £150m sprinkler supplier panel

Local authorities and housing associations call for post-Grenfell preferred supplier list
13 hours ago

Ardmore wins £77m Stratford hotel contract

Two-year build programme gets underway at the 18-storey Gantry development
22 hours ago

Boost your online presence with the new Enquirer Directory

New site for suppliers and buyers will showcase their products, services and latest stories
1 month ago

Lovell to start £30m Doncaster Lakeside scheme

Eastern division boasts £100m forward order book from string of schemes
4 hours ago

Balfour Beatty on track for 2-3% margin by late 2018

Leo Quinn confident of paying down borrowings as they fall due in 2018
1 day ago

Skanska and Multiplex eye £100m City fringe office job

Aldgate Developments prepares to start £100m phase 2 office complex
1 day ago

Speller Metcalfe wins “non-confrontational” £16m contract

Contractor to start revamp of Derby Silk Mill next year using innovative procurement model
1 day ago

Plans for new £80m library at University of Bristol

Design team appointed as construction set to start in summer of 2019
1 day ago

Berkeley director’s wife sells £2.7m shares

Karen Ellis and John Armitt cash in shares as Berkeley soars to record high
1 day ago

Growing Geordie PRS firm plans Brum scheme

All Saints Living plans a string of build to rent projects
1 day ago

February start for £70m Brentford FC stadium

Buckingham Group set to start work on scaled-down Bees ground in West London
2 days ago

Interserve appoints ‘transformation’ director

Sally Cabrini joins board from United Utilities as Interserve set to be streamlined
2 days ago

Race on for £20m Luton Airport multi-storey car park

Bidding opens for a second major airport car park
2 days ago

Developer chosen for trio of Woking towers

Mixed-use specialist Coplan aims to start work on town centre transformation in 2021
2 days ago

Barhale achieves breakthrough on tunnel under the Thames

Civils specialist takes just three weeks to bore 330 metre tunnel for new gas pipes
2 days ago

Construction outlook brightens despite output gloom

HS2 awards see record spike in orders figures during the third quarter
5 days ago

Contractors to benefit from prequal red tape cut

Revamp of PAS 91 will help buyers know more about suppliers
5 days ago

Berkeley to build modular homes factory

Construction set to start on new plant in Kent as profits continue to soar
5 days ago

Wales switches to project bank accounts

Education and Skills Funding Agency last central agency left to adopt PBAs
6 days ago

Forrest to make apprentices redundant

Shift to using subcontractors puts M&E apprentices at risk
5 days ago

Wolverhampton Uni to rebid £20m construction college

Wates was preferred bidder for the Springfield Brewery built environment college
5 days ago

Liverpool council to set up firm to build 10,000 homes

Foundations housing company will build on council land and refurb vacant stock
5 days ago

Plans for £75m student digs in Oxford

Developer Unite Students buys site for 885-bed scheme
5 days ago

Contractor services