UK closer to growth in the construction industry, figures show
A small jump in construction activity has indicated that the UK is closer to growth in the industry.
The construction of buildings saw a 2.2 per cent increase in July, according to reuters.com. Building levels also fell less sharply than previously thought in the second quarter – only dropping 3 per cent, rather than the 3.9 per cent which was expected.
Rise in construction output
Many are suggesting this slight growth could be signalling an end to the recession for the construction and sustainable construction industries.
Howard Archer, an Insight economist at IHS Global told the site, “The… rise in construction output in July provides a modest lift to third-quarter growth prospects.”
Still setbacks facing the construction industry
However, Mr Archer admits there are still setbacks facing the industry, commenting:
“The construction sector continues to be hampered by major headwinds, notably including public spending cuts, a weak economy, a struggling housing sector, and problems in getting funding for large-scale projects.”
The UK economy is tipped to have grown between July and September, with a Reuters poll claiming on Wednesday that it may have seen a 0.6 expansion – what with unexpected high retail sales and industrial output growing at the fastest pace in 25 years.
Optimism or wishful thinking?
The currencysolutions.co.uk website also agreed the UK could finally be relieved from its economic problems, saying:
“The recent buoyancy shown in the UK economy has sparked optimism that the country is paving its way out of the recession.”
Author: Samantha Bartlett Date Written: 14 September 2012