Are We on The Road to Recovery?
The past month has seen many key economists announcing, that the UK is well on the road to economic recovery. However, though the construction industry is now contracting at a less alarming rate, it is still struggling.
In August, we welcomed news that the rate of deterioration had slowed. However, this can mainly be attributed to a decrease in demand for new houses. Indeed, there are still many challenges, threatening the industry’s full recovery.
The most unanticipated of which, is the decline of the civil engineering sub sector. Throughout the recession, this sector had remained remarkably buoyant. However, August witnessed the sectors worst ever recorded results. Not only does this indicate that – despite initial reports of economic recovery – the UK’s construction industry is still volatile, it also highlights flaws in the government’s economic stimulus plan.
In other areas, the residential construction sector has experienced a slower rate of contraction in August than reported in previous months. Meanwhile, the number of construction workers facing redundancy has been though to have significantly reduced.
In conclusion, as the rate of contraction slows across all areas of the construction industry, it definitely seems that we are on the road to recovery; however, the question as to whether the construction industry will ever fully recover from the impact of the recession over the last year, remains unanswered.