UK construction needs vast growth in private sector

A SLUMP in construction output could lead to a “perfect storm” without a massive increase in private sector projects to bolster the industry, according to a new report.

The study by Designing Buildings Wiki says quarterly growth of around £300 million is needed to halt the UK-wide decline. The warning was issued after statistics showed private sector construction has shrunk by 15 per cent over the past decade.

It comes despite a recent revision by the Office for National Statistics in its prediction for the expected fall in the industry. Figures suggested that construction output dropped 3.9 per cent in the second quarter, less than the 5.2 per cent slump pencilled in its first estimate of GDP.

However, Designing Buildings Wiki reported that in the first half, both public and private sector output fell, resulting in total output dropping to a level 
9 per cent lower than it was in 2002.