Construction drags UK into double-dip recession

Aaron Morby 4 years ago
Share

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

Down graph (credit- Idea go)

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

Problem contracts cause construction loss at McLaren

Strong property performance leads to group profit as chairman bullish about construction prospects
5 hours ago

Kier launches new model to build 10,000 homes

New Communities Partnership will help develop local authority land
3 hours ago

Coleman and Company taken off Didcot recovery

Contractor "disappointed" at decision to bring in another firm to recover bodies of victims
2 days ago

Edinburgh school repair work to last until August

Repairing defects in 17 closed Scottish school to take months
17 hours ago

Construction’s most considerate firms revealed

Contractors rewarded for improving image of the industry: Full list of winners
9 hours ago

Contractors “draw a line” under blacklist scandal

Eight industry giants reach compensation settlements with workers
4 days ago

New boss at ISG as CEO David Lawther steps down

Paul Cossell becomes new CEO as contractor prepares for life under new private ownership
4 days ago

Mace downgrades tender price forecast

Cost consultancy arm warns clients are less confident about future projects
4 days ago

Worker killed by crane on Queensferry Crossing

Unions demand full enquiry into tragedy on Workers’ Memorial Day
5 days ago

New housing registrations fall 9%

Slowdown in new home registrations ripples out from London to Midlands
4 days ago

Birmingham 600-flat Exchange Square scheme approved

Work to start this summer on first of three blocks rising to 26-storeys
4 days ago

Morgan Sindall signs £300m deal with Basildon Council

15-year repair and maintenance deal signed for council housing and corporate buildings
4 days ago

Warrington town centre’s £107m revamp approved

Work to start once temporary market is built later this year
4 days ago

Highways England hires DfT finance chief

Vanessa Howlison joins highways body in June
4 days ago

Subcontractors wanted for East London and Essex sites

Host of work opportunities at Meet the Buyer event next week: Register now
4 days ago

T&A Kernoghan goes into administration

Suppliers owed thousands as all staff made redundant
5 days ago

Betting Spy: Sunderland need the win more than Stoke

It's all about desire at this stage of the season and Stoke seem in their Speedos already
5 days ago

Balfour Beatty fights to clawback £10m on Torquay flats job

Balfour left with the bill for award-winning Abbey Sands apartments after developer collapses
5 days ago

Network Rail hives off property firm for £1.8bn estate sale

Standalone business will speed-up decision taking and focus on land for new homes
5 days ago

Con-woman prosecuted for using fake skills cards

West Midlands business woman caught in crackdown on fake skills cards
5 days ago

Contractor services