Construction growth drives UK economy forward

Aaron Morby 11 years ago
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Construction grew by 2.5% in the third quarter helping to drive national GDP growth which rose by 0.8%.

The gathering recovery in construction saw it contribute 15% to overall UK GDP growth from the second to third quarter.

While construction was the fastest growing industrial sector, the larger, all-encompassing services industry, delivered the biggest net contribution of 57%, despite expanding by just 0.7%.

Business Secretary Vince Cable said: “Today’s figures are encouraging, especially for construction and manufacturing, which have been lagging.

“Taken alongside other indicators such as good employment figures and new businesses start-ups, they suggest that things are going in the right direction.”

Noble Francis, Economics Director at the Construction Products Association, said: “The construction sector rose 2.5% in Q3 primarily due to private house building, boosted by Help to Buy, and infrastructure, driven by work on Crossrail, which is Europe’s largest construction project.

“Although output in the sector still remains 12.5% lower than it was five years ago, today’s GDP figures point towards recovery for the construction sector and the wider economy.”

The third quarter figures amounted to a 4.9% year-on-year rise although Q3 of 2012 was particulatly depressed.

 

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