CPA: Construction Re-enters Recession in Q1 with Further Falls Expected
Today’s figures from ONS for GDP in the first quarter of 2012 show that the UK economy and construction industry returned to recession with a fall of 0.2% fall and 3% respectively.
Commenting on these figures, Noble Francis, Construction Products Association Economics Director said: ‘Given the sharp effects of public sector spending cuts over the past 12 months it is unsurprising to see that construction returned to recession in the first quarter with a fall of 3% following the 0.2% fall in Q4. Furthermore, with new orders for construction falling 14% in 2011, the industry is likely to endure further falls near-term. Our latest forecasts for construction anticipate that the industry will fall considerably this year and remain flat in 2013, severely delaying recovery for the economy as a whole.’
‘Given that independent economic analysis has shown clearly that for every £ spent in construction, £2.84 is generated for the wider economy, it is essential that government does its utmost to switch its current spending towards the more productive capital spending.’
ENDS
NOTE TO EDITORS:
The Construction Products Association represents the UK’s manufacturers and suppliers of construction products, components and fittings. The Association acts as the voice of the construction products sector, representing the industry-wide view of its members. The sector has an annual turnover of £50 billion and accounts for 40% of total construction output.
FOR FURTHER INFORMATION CONTACT:
Simon Storer Communications and External Affairs Director
Construction Products Association
Tel : 020 7323 3770
Fax : 020 7323 0307
Mobile : 0770 286 2257
E-mail : simon.storer@constructionproducts.org.uk
Noble Francis Economics Director
Construction Products Association
Tel : 020 7323 3770
Fax : 020 7323 0307
Mobile: 0791 261 2882
E-mail: noble.francis@constructionproducts.org.uk
Nicola Smith
External Affairs Manager
Construction Products Association
26 Store Street
London WC1E 7BT
Tel: 020 7323 7247
Fax: 020 7323 0307
nicola.smith@constructionproducts.org.uk
www.constructionproducts.org.uk
Registered Office as above
Company Number 386 1752
Registered in England
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