Construction industry should not be unduly concerned with GDP rate

Construction industry should not be unduly concerned with GDP rate

The Chancellor of the Exchequer, George Osborne, is pleased with the news that GDP is up by 0.7% in the second quarter of 2015.
 

Reaction to the latest GDP figures

The Chancellor of the Exchequer, George Osborne, is pleased with the news that GDP is up by 0.7% in the second quarter of 2015.

In the months from April to June, the figure is higher than the one recorded in the first quarter of the year (January to March), which stands at 0.4%.

With the GDP estimate 2.6% higher than the corresponding quarter of last year, the Chancellor believes the figures “shows Britain motoring ahead, with (the) economy producing as much per head as ever before. We must stay on the road we’ve set out on.”

In the main industrial groupings, both services (0.7%) and production (1%) both recorded increases, but agriculture has shown a decrease during this time.

Construction meanwhile, is at a flat rate, which is a slightly better showing than the first quarter when the GDP estimate showed a decrease.

Is this good or bad news for the industry? Peter Vinden, Director of the Vinden Partnership believes construction in general should “not be unduly concerned” by the figures.

“Of course as an industry, we would like to have seen construction follow the same path as the production and services sectors, but the figures released means we should not be unduly concerned,” he said.

“In recent weeks and months, various industry figures have been released that show construction growth in a positive light.

“Just last week, we saw Barbour ABI’s review showing significant rises in the value of construction projects last month and the last output figures from the Office for National Statistics (ONS) were favourable to the same month of 2014.

“Therefore, I feel we can be confident in saying we are moving in the right direction.

“I want to see the government continue its commitment to the likes of apprenticeships which will ensure that the industry’s growth is not thwarted in the long term by a shortage in construction skills.”