UK construction sector mirrors concerns for the UK economy

The unprecedented increase in productivity between April and June, which saw British construction output increase by 8.5%, appears to be cooling with the latest purchasing managers index showing that this relatively high degree of growth has slowed markedly of late. Those involved with the industry believe that a significant reduction in house building since June is the major cause of the problem and with the property sector under pressure this is unlikely to change in the short to medium term.

While the purchasing managers index is not an exact science it does give the views and impressions of those who work in the industry. It has proven to be a very forward-looking and very important indication of future trends and future confidence in the UK construction industry. At this point in time it seems that everywhere we look regarding the UK economy we see signs of unrest, uncertainty and a reduction in productivity. If this continues into the future there is no doubt that UK economic growth will be impacted and when you also take into account forthcoming austerity measures introduced by the UK government then the future is certainly not rosy!

Are we seriously in danger of talking ourselves into a potential double dip recession?