Construction sector output decreased by 5.2 per cent in the second quarter of 2012 compared with the first quarter, according to the latest ONS figures, pulling the UK deeper into recession.
The abysmal performance compounds a 4.9 per cent decline in the first quarter of the year. Construction output has now decreased by 9.7 per cent between Q2 2011 and Q2 2012.
GDP as a whole decreased by 0.7 per cent in Q2 2012 compared with Q1, a figure much sharper than the 0.2 per cent economists predicted.
The Government is coming under increasing pressure to provide a ‘shot in the arm’ for the ailing construction sector with an immediate stimulus for the industry, and therefore the economy.
Civil Engineering Contractors Association (CECA) director of external affairs Alasdair Reisner said:
“These figures show that recession in the construction sector is once again the biggest contributor to negative growth in the economy.
“CECA is calling for action to increase activity in the construction sector across the UK as a matter of urgency.
“While we welcome steps the government has taken to facilitate long-term growth through infrastructure provision, it is in the interest of everyone to stem the current collapse in the industry.
“CECA believes more can be done to halt this malaise through the unlocking of stalled projects and targeted investment. We have been working with government and other industry bodies to identify means by which an immediate uplift in activity in the sector may be affected, by identifying work that may be rapidly released across the UK.
“It is of paramount importance that the government makes achieving growth in the construction sector an urgent priority in the short-term, as well as the basis for achieving long-term economic sustainability.”
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