The prospects for construction output weakened still further as the latest new orders figures from the Office of National Statistics for the final quarter of 2011 showed a fall of more than 15% compared with the same quarter one year earlier.
These ONS figures for new construction orders give the clearest picture of the decline in the construction since the Tory-Lib Dem coalition was formed. The fall in orders of 14% in 2011 will lead to a further reduction in construction output during the next 18 months.
The Economics Director at the Construction Products Association, Noble Francis, said: “It is clear that the government’s cuts are having an adverse impact on the industry.”
He added: “Our latest forecasts for construction anticipate a 5.2% fall in the industry overall in 2012, with public sector construction falling 14%. It is clear that if the Chancellor wants construction to be at the heart of the economic recovery then the Budget will need additional measures to help the sector and economy.
“Government needs to do its utmost to shift current spending into capital spending, which government anticipates will fall by 30%.”
The problem is this Government is indulging in so much smoke and mirrors that the smoke is getting in their eyes and when that’s cleared, ministers are then being dazzled by the mirrors!
Further evidence for this was contained in the Autumn Statement, which provided a £5 billion stimulus for infrastructure, but 85% of that won’t be available until 2013/14. If George Osborne is genuinely interested in stimulating growth and creating jobs he should bring forward this infrastructure funding immediately.
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