Builders thrive but construction slumps

 

The output in UK house building is still 4% below its levels from 2008 and that although housebuilders are giving a strong performance.

The British construction industry had a rather grim end to the last year, figures showed recently. The surprising aspect: housebuilders are thriving at the same time.

The Office for National Statistics revealed that construction output decreased by 0.4% in the last quarter of 2015, after a fall of 1.7% in the third quarter of the last year.

The overall output in the sector remains 4.1% below its level in early 2008, prior to the financial crisis dragging the country into recession.

The construction slide happened despite a 4.1% increase in housebuilding, constituting the biggest increase since the middle of 2014.

Big British building companies such as Taylor Wimpey and Barratt Developments have boosted construction following the explosion in demand for new homes.

Howard Archer, chief UK economist at research group IHS Global Insight, said the increase “will be welcomed by the Government which is currently prioritising the sector to deal with the UK’s serious housing shortage.”

But he added: “Sustained major progress needs to be made in this area to make real inroads into the problem.”

Separate figures from Eurostat showed the economy of the Eurozone increased by 0.3% in the fourth quarter of 2015.

Spain’s output grew by 0.8%, Germany managed an increase of only 0.3%, whilst the French economy grew by 0.2% and Italy climbed up 0.1%.

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Builders thrive but construction slumps

Builders thrive but construction slumps

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