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[December 2005]
Construction Industry Heading Into Recession, Says CPA
The Construction Products Association (CPA) said on 2 December 2005 that it was concerned by official statistics released that day by the British Government's Department of Trade & Industry revealing a 1.3% fall in construction output during the first nine months of 2005.
Commenting on the statistics, CPA's Economics Director Allan Wilen said: "The latest data makes disappointing reading. The new data reveals a much sharper decline in construction activity at the start of 2005 than previously estimated by DTI. This combined with a weak third quarter performance left construction output during the first nine months of this year 1.3% down on a year earlier. The industry now appears also certain to endure its first annual decline in output since 1994.
"We are particularly concerned that the fall in construction activity has been led by a marked weakening in Government related new work. The Association's report, 'Achievable Targets?', published in the Autumn, found that Government was falling behind in the delivery of promised investment in a number of key areas including school building, health facilities, social housing and the transport infrastructure. The latest construction data suggests that the gap is widening rather than closing.
"We believe that the Chancellor should use next Monday's Pre-Budget report to revitalise the Government's investment programme and ensure that spending departments and authorities effectively deliver promised improvements to the nation's public buildings and infrastructure."
www.constprod.org.uk
ENDS