Industry must rise to meet UK economy growth
The UK’s economy had higher than expected growth in the three months to September, reveals the latest figures from the Office of National Statistics released today.
According to the ONS, gross domestic product (GDP) for the quarter rose by 0.4%, compared with 0.3% in each of 2017’s first two quarters.
Services and manufacturing industries grew during the period. Industrial production rose in July and August but construction output fell.
The financial markets are now indicating an 84% probability that rates will rise from their current record low of 0.25% when the Bank of England’s Monetary Policy Committee (MPC) meets on 2 November.
Construction is crucial
Construction output in the UK is currently more than £110 billion per annum and contributes 7% of GDP. Approximately 60% of construction output is new build, whilst 40% is refurbishment and maintenance.
The industry accounts for approximately 3 million jobs, 10% of total UK employment and includes both manufacturing and services.
Construction is a high cost, high risk, long-term activity, and so it’s performance is a good indicator of the health of the wider economy. When the economy falters, construction investment often grinds to a halt. However, today’s announcement suggests that our economy is beginning to recover after a tumultuous time post-Brexit. It is imperative that the construction industry recieves the support it needs from government to help continue this upward momentum.