Construction industry posts ‘encouraging results’

Data published by the Office of National Statistics this week shows GPD grew by 0.8 per cent in quarter three (Q3) 2010, with the construction sector accounting for 0.25 per cent.

According to the British Property Federation (BPF), the results mean the sector has posted quarter-on-quarter growth for the first time since 2007, and has recorded an 11 per cent increase between Q3 2010 and Q3 2009.

Liz Peace, chief executive of the BPF, said: ‘These are encouraging results and illustrate just how important a vibrant construction industry is to the overall UK economy.

‘During the last two quarters the construction industry has posted strong economic growth for the first time in three years. It is vital for the UK that it is allowed to maintain that momentum.’

The BPF warned that the construction sector could be held back if ministers do not quickly introduce some form of Tax Increment Financing (TIF), which last week received backing in George Osborne’s Comprehensive Spending Review.