The fourth quarter construction output data shows that the total volume of construction output has decreased by 0.5% compared with the previous quarter. Another quarter of negative growth would see the construction sector enter recession for the third time since 2008.
ACE Chief Executive, Nelson Ogunshakin OBE, said: "While the government has rightly identified that investment in infrastructure is a key path to growth in the economy, the latest data emphasises the challenges that remain for companies across the construction sector as they look to deliver on society’s aspirations."
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This edition also looks at the latest labour market statistics, which are becoming an area of concern. The flexibility that has been welcome through the recession is beginning to look more and more like the embedding of long-term structural problems. These issues will be of increased importance going forward as they could constrain the UK’s growth potential and participate in increased welfare spending.
The report also explores the scale of the international infrastructure challenge faced across transportation, water and energy. For example, there will be a doubling of the length of global high speed rail networks to the extent that they could circle the planet.
(CD)
