NFB says revised GDP confirms that industry confidence is being translated into growth
The revised figures released by the Office for National Statistics show that construction industry output rose by 1.4 per cent between quarters one and two in 2013. Although this still represents a 0.5 per cent fall compared with the second quarter of 2012, this is significantly less than the 1 per cent in the previous estimate.
The figures also reconfirm that the economy is returning to growth, with a rise in GDP of 1.5 per cent in the second quarter of 2013 compared with the same period in 2012. The upward revision of 0.1 per cent for the economy as a whole was driven by balanced growth across the economy, underpinned by a rise in business investment of 0.9 per cent in addition to rises in domestic consumption.
The upward revision of construction output from 0.9 per cent growth to 1.4 per cent growth confirms that the renewed sense of industry confidence, boosted by measures taken by the government in the form of Help to Buy and sustained investment in infrastructure are being converted in measurable growth.
Julia Evans, chief executive of the National Federation of Builders, said: “The revised GDP figures show that the foundations for long-term growth are being put in place, showing the construction industry is moving in the right direction and playing its part in driving economic recovery. However, more needs to be done to make sure that this growth continues into 2014 and beyond. Through the industrial strategy for construction, continued collaboration between government and industry will ensure that the industry continues on the path to sustainable growth for the future”
Julia continued: “in addition to the welcome upward revision to construction output statistics, the figures show that growth across the economy is balanced with business investment rising by £270 million from £29.19 billion to £29.46 billion between quarters one and two in 2013. The proof that businesses are investing across the economy is a further sign that private sector confidence is being converted into financial investment and economic growth”.
