UK Construction Output Falling Through this Year
The news of a double dip recession is now making its way around the UK. Consumer confidence will certainly take note of what this means and housing market figures will more than likely reflect the unfortunate news. Remortgage and original mortgage products will be in competition with one another from various lenders like never before. A double dip recession will not only impact the housing market numbers, but number in adjacent markets as well. The construction market is one which will also be affected.
Almost 50,000 construction jobs are predicted to fall to the side by the conclusion of the year. This will result in a reduction in output by 3%. The subsequent outlook for the next five years has also been released. The annual report by the Construction Skills Network has revealed an expected variation in growth over the next half decade. There are no defined trends in growth, only crests and dips varying from a 4% increase to dips of up to 3%.
The deputy chairman of CITB – ConstructionSkills, Judy Lowe, commented on the construction industry and its outlook, saying: “The Construction Skills Network clearly shows that our industry is in for a tough time. Infrastructure investment, the first nuclear power plants and the revival of private housing will help, but the hard fact remains that despite an increase in growth from 2013 onwards, output and employment levels in construction will not have reached their 2007-8 levels by the end of the forecast in 2016.”