Construction output fell by 3.3% in the final quarter of 2010, the largest fall since the height of the recession in early 2009.
The GDP figures were published today by the Office of National Statistics. Construction Products Association chief executive, Michael Ankers said he was concerned about the impact of the sharp downturn in the wider economy on construction.
‘After 2 quarters of relatively strong growth in the middle of 2010, these latest figures show that the economic recovery has stalled even before the full impact of the public sector spending cuts is felt,” he said.
” Although the poor weather in the last few weeks of the year undoubtedly had an impact on the construction industry, as it did in 2009, it is clear that the recovery in the construction industry has already petered out and that private sector growth is not coming through strongly enough.”
The CPA is forecasting that construction output will fall a further 2% in 2011 and this will inevitably hold back the pace of recovery in the wider economy.
It is essential, Ankers said, that the government does more to encourage a private sector led recovery by accelerating the measures it is taking to reduce burdens on business.
“It also needs to ensure that its broader policy objectives on localism help stimulate rather than hinder economic growth.’