Industry casts doubt on output figures

Grant Prior 15 years ago
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Construction experts are sceptical about government figures released today which show industry output up nearly 9% during the second quarter of this year compared with the first three months.

The statistics represent the largest quarterly jump in construction for 50 years.

But leaders of the Construction Products Association are warning that the industry is still in a very precarious position and  the figures do not indicate a dramatic recovery in the industry’s fortunes.

Chief Executive, Michael Ankers said: “Today’s figures show the strongest quarterly increase in output in nearly 50 years, but they flatter to deceive.

“Construction was particularly badly hit by the poor weather in the early part of the year and so the second quarter was always going to see a sharp pick up.

“In addition, a number of public sector projects were started in the run up to the Election and this undoubtedly helped boost output in the spring.

“Looking further ahead we are concerned about the prospects for continued output growth in the rest of the year and beyond.

“The latest Construction Products Association trade survey, released earlier this week, shows that on balance product manufacturers and suppliers anticipate a fall in sales in the rest of the year.

“With cuts in public spending on projects like the Building Schools for the Future already announced and further cuts inevitable after the Comprehensive Spending Review on 20 October, the future remains very uncertain.”

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