Construction underpins economic growth in UK
The construction industry was the largest contributor to economic growth in the third quarter of 2010, according to data from the Office of National Statistics. Of the 0.8% growth in GDP in this third quarter of 2010, the construction sector accounted for nearly a third, 0.25%. These results mean that the sector has achieved an 11% increase between Q3 2009 and Q3 2010. Liz Peace, chief executive of the British Property Federation, says, ‘These are encouraging results and illustrate just how important a vibrant construction industry is to the overall UK economy.
More detail is contained in the latest figures from Glenigan, which reports the private non-residential construction for the three months to September increased by 7% compared to the same period last year. The retail, hotel and leisure, industrial and office sectors all saw increases in the value of construction projects starting on site.
While retail and hotel construction has been strong for the last six months, industrial and office project starts have returned to growth after a sustained period of decline. James Abraham, economist with Glenigan, comments, ‘The increase reflects improved business confidence and lending conditions. It is, however, from an extremely low base.
