GDP figures reflect slump in building industry

“Sadly, it’s no surprise to us today that the GDP figures are so disappointing as they mirror years of falling workloads in the building industry. The SME construction sector has been cutting employment for three and a half years  and all the indicators point to the fact that we have still not hit the bottom. Looking ahead 36% of small building companies expect to see falling workloads over the next three months.”

Diment continued:

“The ONS  attributes the poor GDP figures to one off factors such as the effect of the Japanese earthquake and the Royal Wedding but the fact remains that the construction sector, which accounts for nearly 10% of the UK’s GDP, is in  a very sorry state as a consequence of Government cuts in capital expenditure  and falling consumer confidence.  Housebuilders are only building half the number of homes that are needed to meet current demand and there is little sign that this situation is improving.”

Diment concluded:

“The Government needs to refocus its agenda on creating conditions for business growth because without this the economy is going to continue to falter. Investment in our country’s infrastructure and building the homes that we need is now critical to creating the conditions for growth and securing our competiveness in the world economy.”

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