Construction output in the UK shrank by 2.4 per cent in Q1 of 2013, falling to its lowest level since 1998.
The decline in output was mainly due to a sharp fall in new work, especially in the public sector. There has been a small rise in repair and maintenance work for private housing. So sounds like the big infrastructure projects will be delayed until nearer the election so that it can flatter the GDP figures...
Construction output, is now 6.5 per cent lower than for Q1 2012. Construction is down 20% since 2008 when there was a mini boom after the credit crunch.
The UK’s economy has contracted by 2.6 per cent over the same period.
The amount of new housing work available declined by 4.1 per cent and the amount of infrastructure work by 7.5 per cent. Housing repair and maintenance work by public corporations declined by 3.2 per cent, against a 0.4 per cent rise in output for the private sector in this area.
Meanwhile Experian has published statistics that show the insolvency rate among businesses with 25-50 employees fell by 0.07 per cent from 0.24 per cent in March 2012 to 0.17 per cent in March 2013 – almost back to the levels seen in March 2007 of 0.16 per cent and nearly half their peak of 0.35 per cent in March 2009.
Insolvencies also fell by 0.07 per cent amongst businesses with 11-25 employees, down from 0.25 per cent in March 2012 to 0.18 per cent in March 2013. This represents a fall of about 30% in the insolvency rate overall
If you strip out the effect of insolvencies in the construction sector then the rest of the UK businesses are holding out very well.
For insolvency advice visit www.companyrescue.co.uk