News Article

Sector Analysis

Green shoots of recovery in construction industry withering, says KPMG

By CreditMan Friday, October 14, 2011

Richard Threlfall, KPMG’s UK head of infrastructure, building and construction comments on the latest construction output figures by the Office for National Statistics:

“The latest construction output figures are yet more evidence that the green shoots of recovery are withering; particularly worrying is the near 25% fall in private industrial new work. It’s clear that sustainable recovery needs to be driven by private sector investment and this big drop shows the lack of confidence across the industry.

Without a foreseeable uptick in the coming quarter the impact on the construction market is expected to be sharp and prolonged. However, there is some small comfort in the 3.3% lift in private new housing – new house starts are probably the Government’s quickest way of injecting short-term growth.”