Partner Article

Construction industry heading for double dipper

THE UK construction industry is heading for a double dip recession - that’s according to the latest Construction Products Association’s industry forecast.

They predict that construction will be the first major industry sector to fall back into recession following a temporary recovery in the first six months of this year.

Despite strong growth in the spring and early summer, the forecasts show output will fall in the remaining months of 2010 and the decline will continue into the first part of 2011.

Commenting on these forecasts, Michael Ankers, chief executive of the Construction Products Association, said: “Although 2010 as a whole is likely to be slightly better than 2009, it is very much a year of two halves with construction output slipping back in the second half of the year as a result of growing uncertainty in the housing market and cuts in public spending.

’Looking forward, the industry needs to see strong private sector growth to offset the significant reduction in public investment that we anticipate over the next few years.“

The CPA added that the government’s economic programme must recognise that spending cuts and tax hikes alone will not secure long-term economic growth.

This was posted in Bdaily's Members' News section by Ruth Mitchell .