Construction last major industry stuck in recession

Aaron Morby 12 years ago
Share

Despite Government pledges to use construction to boost the economy, the industry dived deeper into recession in the third quarter.

Latest official GDP figures show that construction is now the worst performer of the major UK industries.

The lastest preliminary estimate for UK GDP shows construction shrank by 2.5% in the third quarter compared to the previous three months.

The latest figure compounds the 3% fall in the second quarter, taking GDP to the lowest level since 2000.

Construction is shrinking on an annualised basis of around 1%, or £1bn a month.

Overall the UK economy bounced back by 1% in the third quarter but remains below where it was a year ago.

The other main industries all followed the national trend with general production up 1.1% and services industries rebounding 1.3%.

Civil Engineering Contractors Association director of external affairs Alasdair Reisner said: “The whole of the UK has been waiting for the country to emerge from the double-dip recession. As such today’s news is welcome as it indicates a return to much-needed growth.

“Yet it is clear that the construction sector has declined even further in the last quarter. Given the importance of the industry to the UK economy, delivering projects that support growth in other sectors, as well as employment for millions of UK workers, it is vital that steps are taken to rebuild UK construction.

“The plummeting output for the sector should give the government grave cause for concern. Any continuation of these declines runs the risk of dragging the UK into a triple-dip recession.

“We need swift action to unlock the potential of the construction industry so that it can play its role in the sustained recovery of the UK economy.”

Latest news

Taylor Wimpey chief honoured with CBE

Jennie Daly recognised in King's Birthday honours
30 mins ago

Geoffrey Osborne supply chain hit for £26m

More than 500 suppliers and subcontractors left holding unpaid bills
1 day ago

SME contractors agree 4% pay rise for site workers

Workers will also get an extra day of holiday
23 hours ago

Labour to mothball £320m A27 job to fix potholes

Manifesto confirms Arundel Bypass canned as "poor value for money"
1 day ago

Lendlease’s £1.9bn Smithfield Birmingham scheme approved

Initial work to start later this year despite questions over Lendlease's degree of involvement
1 day ago

Crest Nicholson rejects £650m Bellway bid

Second Bellway approach rebuffed
2 days ago

Hill submits £800m East London estate rebuild plan

Over 1,900 homes to be built in five phase at Teviot Estate in Poplar
2 days ago

Plan approved for 8,500-seat Edinburgh indoor arena

Construction expected to start next year once a contractor is appointed
1 day ago

Statom starts on £25m Bristol Airport precast car park

Major work package on transport upgrade being overseen by Griffiths Farrans JV
2 days ago

Build problems plunge Crest Nicholson to a £31m loss

House builder unearths more defects on completed sites
2 days ago

Rebooted Amey lifts contract win rate to 1 in 3 bids

Amey chief says firm exceeded expectations in first year under new owners
2 days ago

BAM Nuttall fined £2.3m after worker drowned

Court hears how series of safety failures led to tragedy
3 days ago

OCU buys Scottish civils contractor RJ McLeod

Deal takes multi-utility infrastructure specialist revenue to over £800m
3 days ago

£220m plan to restore secret wartime tunnels approved

Tunnels under High Holborn to become cultural exhibition space
3 days ago

Galliford Try wins £69m Scottish school job

Deal sealed on Paisley Grammar School project in Renfrewshire
2 days ago

Balfour wins design for £690m Skye transmission job

Main work contract for 137km power line to be awarded later this year
3 days ago

Student and resi developer Fortis goes under

Cheshire based developer follows construction arm into liquidation
3 days ago

Construction output falls for third month running

Heavy rain and strong winds blamed for sharp fall in activity in April
3 days ago

Plan in for Leeds 27-storey block of flats

390 flats planned at former Morgan Sindall office site
3 days ago

Firms readied for £1.5bn Parliament estate upkeep deal

Invitation to tender due to go out next month
4 days ago

Amey switches kit supplier

Deal with HSS was worth £24.5m a year to rental specialist
3 days ago

Track workers scatter to avoid runaway rail trolley

Track trolley careers 1km towards work site
3 days ago

Direct delivery model pays off as Murphy profit soars to £67m

Group operating margin jumps from 3% to 5% in record year
4 days ago

Ex-Galliard boss to lead Battersea next building phase

Don O’Sullivan joins as plans advance to start phase 3C of power station redevelopment
4 days ago

£100m Digbeth 33-storey flats job out to bid

483 flats will be delivered for Clarion housing association
4 days ago

Van Elle fined £233,000 after piling rig kills driver

Court hears how tragedy was caused by poorly maintained plant
4 days ago

Renew buys utilities contractor Excalon

Infrastructure giant expand into electricity transmission market with £26m deal
4 days ago

Planning for new homes plunges to record low

Home builders call for urgent action from incoming government
4 days ago

JTRE starts £400m 21-floor London tower scheme

Office block and 64 affordable homes to be built at 220 Blackfriars Road site
5 days ago

R G Carter construction profits up despite 24% revenue fall

Selective client choice help profit jump to £6m from £1m previously
5 days ago

Contractor services