construction-falls-due-to-floods

Construction output falls due to floods

Output in the construction industry shrank in February according to data releases by the Office For National Statistics ( ONS). The setback was put down to the bad weather which was the wettest winter on record. Up until February the previous quarter showed a growth of just under 0.4% as the construction industry tried to claw it’s way out of the recession. The figures for March are not out yet but these are likely to be up because of the amount of work that has been carried out due to flood damage.

Despite the upturn in the economy construction output is still 13% below it’s pre-recession peak. The government will be keen to see the construction industry grow as it provides tens of thousands of jobs across Britain. It is also an good economic indicator of how healthy the recovery is going to be and whether it can be maintained.

The industry has yet to benefit from the recovery in the housing market but this will follow as more new homes are built. analysts have said that it is a matter of time before the industry feels the rebound in the property market. Of course there is concern that the recovery in the housing market could burn itself out and the Bank of England will be keen to ensure that the recovery is as strong as possible.