Industry News

Construction rise drives GDP growth July 27, 2010

The construction sector's output rose by 6.6 per cent in the second quarter of 2010, contributing to an increase of 1.1 per cent in the UK's gross domestic product (GDP).

Figures released by the Office for National Statistics showed that in the previous quarter, construction output registered a decrease of 1.6 per cent.

The leap is the biggest the sector has seen since 1963 and partly reflects the dent in activity caused by poor weather at the beginning of the year.

Britain's economic growth was almost twice the 0.6 per cent forecast by economists and the highest for four years.

Chancellor George Osborne said the figures demonstrated that the private sector would be able to compensate for cutbacks in public spending.

"Today's figures show the private sector contributing all but 0.1 per cent of the growth … and put beyond doubt that it was right to begin acting on the deficit now," he stated.


© Adfero Ltd

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