Construction industry growth boosts UK GDP

Published:  26 July, 2010

The construction industry has seen 6.6% growth in quarter two of 2010, boosting the UK's overall gross domestic product.

The increase in construction output has been attributed to project timetables being brought forward ahead of the government's Emergency Budget and anticipated cuts in public spending.

The National Federation of Builders (NFB) has welcomed this growth, but warned that it may not be sustainable in the longer term.

Julia Evans, chief executive of the NFB, said: "Any increase in the contribution that construction can make to the UK economy is always good news.

"We hope that the government takes into account the resulting benefit to the wider economy of a sustained investment in construction when it makes further decisions on spending."

The NFB believes that the following factors will have an impact on future growth: mortgage lending remains modest; lending to businesses has fallen; and major, national construction projects such as Building Schools for the Future are being re-thought. Furthermore, NFB believes that the unco-ordinated suspension of much of the planning system will put this tentative growth at risk as investment in housing projects is shelved.