Construction has entered recession despite the overall UK economy unexpectedly growing, according to the latest ONS output figures.
The ONS’s first estimate for second quarter growth put the UK’s overall growth at 0.6%, but construction registered a 0.4% decline. It was the second successive quarter of construction output decline, after a 0.3% fall in the first quarter, putting the sector in recession.
The second quarter covers the months of April, May and June, with the EU referendum on 23 June falling near the end of the period.
It prompted the FMB to claim that construction was under considerable threat and the Government's ambitious plans to get Britain building again would collapse without urgent action.
Brian Berry, Chief Executive of the FMB, said: “The construction industry has grown steadily over the past few years and for the sector to experience two consecutive quarters of negative growth demonstrates the powerful effect uncertainty and a lack of confidence can have.
"The Government must now take bold action and do everything in its power to prevent these preliminary estimates by the ONS from becoming more concrete or sustained. A firm commitment to invest public funds in capital projects such as house building and infrastructure would go a long way to assuaging fears that demand will dive in the wake of Brexit.
"The country’s housing crisis and the enormous skills shortage our sector faces owe much to how the construction industry suffered during the last economic downturn – it’s pivotal that we learn from those mistakes and find a way to keep Britain building.”
