Further evidence confirms construction growth
Latest Construction Trade Survey provides more evidence that construction grew in first quarter
THE latest Construction Trade Survey published earlier this week, which brings together information from contractors, product manufacturers, specialists and civil engineers, has provided further evidence that construction grew in the first quarter of 2011, compared with the weather-affected final quarter of last year.
Commenting on the survey, Noble Francis, economics director at the Construction Products Association, said: ‘This survey highlights that construction improved during the first quarter of the year, contrasting sharply with the ONS’s construction output figures that indicated construction fell 4% over the same period.
‘However, this improving situation is compared to the final quarter of last year, which was badly affected by poor weather in November and December. The industry’s near-term future is likely to be extremely challenging with domestic demand remaining subdued, exacerbated by expectations of further rises in fuel, energy and materials costs.
Stephen Ratcliffe, director of the UK Contractors Group, added: ‘The survey highlights that the situation for contractors improved in Q1 compared with the weather-affected final quarter of 2010. However, there remains a great deal of concern regarding the year ahead given that we have not yet seen the full impact of the public sector cuts.
‘The Government has stated that construction is at the heart of its growth strategy for the UK economy and, as it accounts for around 10% of the UK’s economy, it is vital that investment in essential schools, hospitals and housing is maintained at levels that will provide the basis for economic recovery.’
