Construction industry output drops pushing industry back into recession

The Office of National Statistics have released figures that show the construction industry has suffered from a five percent fall in output over the first quarter of 2012. They had previously stated a three percent fall so this has come as a heavy blow to the industry and economists how recognise that construction is a key to a wider economic recovery. The industry has suffered at as a whole but those who specialise in certain sectors like private housing, house extensions, conservation work and specialist contractors for structural repairs have seen more positive times. Public housing construction output has seen falls of over ten percent and private new builds have also dropped. These private developments have fallen back restrained by lending constrictions in both development funding and home mortgages. The private commercial construction sector has also seen a fall of over seven percent as this is the largest of the construction sectors it has had a huge impact on the overall figures. With the Greek crisis rumbling on it looks like the banks will continue to keep the money supply and therefore lending tight. This will continue to hold back private housing developments couple this with government spending cuts and the short term outlook looks to remain less positive.