Feed: UK Housing Construction Slows Down This Year - AggScore: 9.1

UK Housing Construction Slows Down This Year

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h1emUK Housing Construction emSlows Downem emThis Yearememh1After nine months of growth, Britains construction business took a chilly weather dip, as outdoor work became treacherous in the icy conditions.Experts expected the sector to slow a little, but things were worse than feared. Jeremy Cook, chief economist at foreign exchange broker World First, said This isnt really a surprise after the snowapocalypse which we experienced last month coupled with the normal Christmas slowdown. Nonetheless it is still a cause for concern.Construction spending has formed a significant part of the strong GDP figures we percieve recently, and it sets the UK up for any slip in the fourth quarter figures.Even though it only accounts for just over 6pc of GDP, the construction sector helped drive the UKs strong economic development in recent months. The building industry accounted for 0.4 of the percentage point of the second quarters 1.1 percent expansion and another 0.2 percentage point from the overall 0.7 per cent growth seen in the third.Since that rapid expansion, which came as the sector recovered from the deep contraction experienced throughout the recession, construction continues to be slowing down.The most recent PMI showed a small increase in the number of new orders, which was taken as confirmation that the poor weather ended up being to blame for that lower amounts of current activity.However, there have been also signs of continued underlying difficulties. Employment fell sharply as organizations kept cutting jobs and confidence about future organization prospects continues to be muted.Only commercial construction, compared to civil engineering and domestic building, saw activity rise in December, also it was in the slowest rate in the last 10 months.Civil engineering and home building both shrank, with residential construction falling at the fastest rate since April 2009, indicating the knockon results of a stagnant housing market.Businesses is going to be hoping theyll have a catchup effect when the thaw takes hold, because they did following a last harsh winter.Nevertheless, conditions look tougher this time around, as government cutbacks hit spending on public building.To sell house quickly, we can assist you to sell property fast. Give us a call.em em