Government’s 4% construction rise figure is being challenged

A statement from the government that the construction industry saw its production rise by four per cent has been challenged. The latest construction trade survey has challenged this view, the Construction Enquirer reported, stating that it shows that there has in fact been a fall in demand for suppliers and a drop in output for contractors. It has resulted in some firms expressing concern about the future of the sector following the news that public capital expenditure is set to fall by 30 per cent. Noble Francis, economics director at the Construction Products Association, said: “The environment for contractors and product manufacturers is still extremely challenging, especially given that the public sector accounts for more than one third of total construction output.” He added that although there have been a number of high-profile contracts being agreed, 71 per cent of contractors have reported that their order books fell in the last quarter. Brian Berry, director of external affairs at the Federation of Master Builders, said recently that cuts now will have long-lasting effects on employment in construction.

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