GDP figures would indicate low growth for the UK and a worrying 0.7% fall for the industry
Construction has fallen into a double-dip recession – that is if the preliminary estimates by the statisticians putting together the first quarter 2010 gross domestic product figures are to be believed.
The preliminary GDP figures put growth at a pallid 0.2% for the economy as a whole. This low level of growth will be a huge worry for construction if the figure is not revised upward in later estimates.
In fairness the chances of a revision upward in this data does seem reasonably likely given that the figure is built on early returns of data. These early returns would have been disproportionately influenced by the horrid spate of winter weather, which is thought to have knocked economic activity at the start of the year.
Meanwhile, the statisticians’ first stab at growth for construction saw them record a fall of 0.7% quarter-on-quarter which follows the 0.9% fall in the final quarter of last year (see graph taken from the ONS press release), so technically this would suggest a secondary phase of recession.
Read more on the Brickonomics blog.